Consider a value-weighted market index that includes the following two companies. You form a portfolio to mimic the index. On Day 1 the portfolio has weights which are equal to the value of each company's shares relative to the total value of both companies. Answer the questions that follow.

	Company 1		Company 2
Day	Price	# of Shares	Price	# of Shares
1	$10	nbsp 900	$9	1,600
2	$10.40	nbsp 900	$9.18	1,600

a. What is the portfolio weight for Company 1 on Day 1?

b. What is the return on the portfolio from Day 1 to Day 2?

c. What is the percentage change in the total value of the stocks in the index from Day 1 to day 2?

a. What is the portfolio weight for Company 1 on Day 1? The portfolio weight for Company 1 on Day 1 is

nothing%.

(Round to two decimal places.)b. What is the return on the portfolio from Day 1 to Day 2? The return on the portfolio from Day 1 to Day 2 is

nothing%.

(Round to two decimal places.)c. What is the percentage change in the total value of the stocks in the index from Day 1 to day 2? The percentage change is

nothing%.

(Round to two decimal places.)