Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Hello, Need your help with the attached assignment. Thanks You are provided with the following information on four shares of stock. Assume that the base
Hello,
Need your help with the attached assignment.
Thanks
You are provided with the following information on four shares of stock. Assume that the base year is Dec 2000 and all splits take place on this date. That is after close of trading on December 31, 2000. Stock A and B have a 2 for 1 split at the end of trading on December 31, 2000. Use this information to answer the questions listed below. 31-Dec00 31-Dec00 31-Dec01 31-Dec01 31-Dec-00 Stoc k Price Shares Price Shares MV MV A $ 175.00 10000 $ 50.00 20000 $1,750,00 0 $1,000,00 0 2 B $ 50.00 4000 $ 35.00 8000 $200,000 $280,000 2 C $ 20.00 15000 $ 30.00 15000 $300,000 $450,000 1 20000 $2,800,00 0 $2,600,00 0 1 D $ 140.00 20000 $ 130.00 Dec-01 Spli t 1. Calculate the rate of return on a price weighted average of the four stocks for the period December 31, 2000 to December 31, 2001. Remember to adjust for changes in the divisor. 2. Calculate the rate of return on a market value weighted index of the four stocks for the period December 31, 2000 to December 31, 2001. 3. Calculate the rate of return on an equally weighted index of the four stocks for the period December 31, 2000 to December 31, 2001. Provide solutions in an EXCEL fileStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started