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Exhibit 5.7 USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S) Number December 31, 2011 December 31, 2012 Stock of Shares Price Value Price Value A

Exhibit 5.7

USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

Number

December 31, 2011

December 31, 2012

Stock

of Shares

Price

Value

Price

Value

A

5,000

$20

$100,000

$25

$125,000

B

8,000

$40

$320,000

$42

$304,000

C

15,000

$10

$150,000

$15

$225,000

Refer to Exhibit 5.7. What would be the total percentage change in an equally weighted portfolio of ABC?

a.

13.33% Capital gains yield, A =25/20-1=.25, B=((42)/40-1)=.05, C=((15)/10-1)=.5

b.

18.67% WA=.33, WB=.33, WB=.33

c.

23.41% Expected return of Portfolio = 25*0.3333+5*0.3333+50*0.3333=.2667

d.

26.67%

e.

36.83%

Refer to Exhibit 5.7. If the December 31, 2011 equal weighted index for ABC was 100, what is the equalweighted index for ABC on December 31, 2012?

a.

108.35

b.

114.74

c.

120.19

d.

126.67

e.

131.54

Refer to Exhibit 5.7. If the December 31, 2011 value weighted index for ABC was 100, what is the valueweighted index for ABC on December 31, 2012?

a.

108.35

b.

114.74

c.

120.19

d.

126.67

e.

131.54

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