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Hello , please i need the answer for question 1 I. (15 points) Consider the following data about four stocks over one period: % Change
Hello , please i need the answer for question 1
I. (15 points) Consider the following data about four stocks over one period: % Change in price $33 Stock A Stock B Stock C Stock D $25 $100 $66 $22 Number of shares 5,000,000 1.500.000 1,000,000 10,000,000 Number of shares 5,000,000 1,500,000 1.000.000 10,000,000 $90 $80 $18 1. Based on the information given, for a price-weighted index of the four stocks calculate a. The rate of return. b. Assume that Stock D makes a 4-for-1 split at the end of this period, find the new value of the divisor 2. Based on the information given for these stocks, calculate the rate of return on: a. A market value-weighted index b. An equally-weighted index. 3. Name one disadvantage of a price-weighted index of a market value-weighted, and of an equally-weighted index. II. An analyst gathered the following information regarding a mutual fund's returns over 5 yearsStep by Step Solution
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