Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A benchmark market value-weighted index is comprised of three stocks. Yesterday the three stocks were priced at $12, $20, and $60. The number of outstanding

image text in transcribed

A benchmark market value-weighted index is comprised of three stocks. Yesterday the three stocks were priced at $12, $20, and $60. The number of outstanding shares for each is 600,000 shares, 500,000 shares, and 200,000 shares, respectively. If the stock prices changed to $16, $18, and $62 today respectively, what is the 1-day rate of return on the index? 4.11% O 6.16% 0 2.05% O 0.00%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Routledge Handbook Of Responsible Investment

Authors: Tessa Hebb, James Hawley, Andreas Hoepner, Agnes Neher, David Wood

1st Edition

0415624517, 978-0415624510

More Books

Students also viewed these Finance questions

Question

What does stickiest refer to in regard to social media

Answered: 1 week ago

Question

Describe new developments in the design of pay structures. page 475

Answered: 1 week ago