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Help with #2 Questions 2-4: Consider a portfolio made of the following 5 stocks. The portfolio is initially indexed at 100, Prices Initial End of

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Help with #2

Questions 2-4: Consider a portfolio made of the following 5 stocks. The portfolio is initially indexed at 100, Prices Initial End of Year 1 End of Year 2 End of Year 3 Stock A 100 110 100 58 Stock B 50 45 104 105 Stock C 100 110 120 130 Stock D 500 600 1100 1200 Stock E 4 2.5 2 1.9 Quantity of shares Initial End of Year 1 End of Year 2 End of Year 3 Stock A 50 50 50 100 Stock B 50 50 25 25 Stock C 40 40 40 40 Stock D 10 10 5 5 Stock E 5000 10000 10000 10000 2. If the portfolio is indexed using a price-weighted method, its value at the end of year 2 is closest to: A. 104.0 B. 108.8 C. 118.2 3. A. B. C. Under each of the following techniques, the portfolio annualized return is closest to: Price weighted Market Value weighted 5% 1% 6% 2% 7% 6% Equally weighted 3% 5% 7% 4. A. B. C. Under each of the following techniques, the portfolio index value at the end of year 3 is closest to: Price weighted Market Value weighted Equally weighted 118 106 115 108 119 116 112 108 110 Questions 2-4: Consider a portfolio made of the following 5 stocks. The portfolio is initially indexed at 100, Prices Initial End of Year 1 End of Year 2 End of Year 3 Stock A 100 110 100 58 Stock B 50 45 104 105 Stock C 100 110 120 130 Stock D 500 600 1100 1200 Stock E 4 2.5 2 1.9 Quantity of shares Initial End of Year 1 End of Year 2 End of Year 3 Stock A 50 50 50 100 Stock B 50 50 25 25 Stock C 40 40 40 40 Stock D 10 10 5 5 Stock E 5000 10000 10000 10000 2. If the portfolio is indexed using a price-weighted method, its value at the end of year 2 is closest to: A. 104.0 B. 108.8 C. 118.2 3. A. B. C. Under each of the following techniques, the portfolio annualized return is closest to: Price weighted Market Value weighted 5% 1% 6% 2% 7% 6% Equally weighted 3% 5% 7% 4. A. B. C. Under each of the following techniques, the portfolio index value at the end of year 3 is closest to: Price weighted Market Value weighted Equally weighted 118 106 115 108 119 116 112 108 110

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