Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

At market close on Jan 1st, stock A had 100M shares outstanding and traded at $90 a share. On the following day, the stock closed

At market close on Jan 1st, stock A had 100M shares outstanding and traded at $90 a share. On the following day, the stock closed at $95. Stock B had 200M shares outstanding and its share price dropped from $50 on Jan 1st to $45 on Jan 2nd. Stock C had the same number of shares as stock B and its stock rose from $100 a share to $110 on that same day.

a. What is the Jan 2nd return on a price-weighted index comprised of these 3 stocks?

b. What is the Jan 2nd return on a value-weighted index of the 3 stocks?

c. What is the Jan 2nd return on an equal-weighted index of the 3 stocks?

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 Foundations Of Business Analysis

Authors: M Douglas Berg

1st Edition

1465222030, 9781465222039

More Books

Students also viewed these Finance questions

Question

work settings of recent graduates;

Answered: 1 week ago