Question
Consider the five stocks in the following table. Pt represents price at time t,and Qt represents shares outstanding at time t. Stock C splits 3
Consider the five stocks in the following table. Pt represents price at time t,and Qt represents shares outstanding at time t. Stock C splits 3 for 1in year 2018 and Stock D splits 2 for 1 in year 2019.
Stocks | P2017 | Q2017 | P2018 | Q2018 | P2019 | Q2019 |
A | 170 | 100 | 175 | 100 | 172 | 100 |
B | 95 | 200 | 98 | 200 | 97 | 200 |
C | 180 | 200 | 57 | 600 | 60 | 600 |
D | 100 | 200 | 110 | 200 | 53 | 400 |
a.What is the new divisor for the price weighted index in year 2018?
b.Calculate the rate of return on a price-weighted index of the four stocks form year 2017 to 2018?
c.What is the new divisor for the price weighted index in year 2019?
d.Calculate the rate of return on a price-weighted index of the four stocks form year 2018 to 2019?
e.Calculate the rates of return on a market value-weighted index of the four stocks form year 2017 to 2018?
f.Calculate the rates of return on an equally weighted index the four stocks form year 2018 to 2019?
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