Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A price-weighted index is composed of 3 stocks. Stock A is trading at $221, stock B at $51 and stock C at $42. One year

A price-weighted index is composed of 3 stocks. Stock A is trading at $221, stock B at $51 and stock C at $42. One year later, stock A is now worth $159, stock B is $71, and stock C is $45. Neither of the 3 stocks paid any dividends. The total return for this index is closest to:

A. -12.42%

B. 18.15%

C. -14.18%

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

Business And Personal Finance

Authors: McGraw-Hill

1st Edition

0078945801, 9780078945809

More Books

Students also viewed these Finance questions

Question

Explain all drawbacks of the application procedure.

Answered: 1 week ago

Question

Determine Leading or Lagging Power Factor in Python.

Answered: 1 week ago

Question

Understand how people development is used to retain talent.

Answered: 1 week ago