FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Imagine a market value weighted index with three members, and a different number of shares outstanding for each. At time T, the value of the

image text in transcribed

Imagine a market value weighted index with three members, and a different number of shares outstanding for each. At time T, the value of the index is 2400 , but if the number of shares outstanding for each stock is 100 , the value of the index would be 7,000 . If we decide to use the price-weighted index, what is the value of this index at time T

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Management For Decision Makers

Financial Management For Decision Makers

Authors: Peter Atrill

8th Edition

129213433X, 978-1292134338

More Books

Students also viewed these Finance questions

Question

★★★★★
a. Have you ever heard someone say, It must be right, thats what my calculator told me? Explain why the calculator may or may not have given the correct answer. b. What is meant by the phrase...

Answered: 1 week ago

Question

★★★★★
Demonstrate through language that you are grateful to be informed.

Answered: 1 week ago

Question

★★★★★
90. Individual A has a red die and B has a green die (both fair). If they each roll until they obtain ve doubles (11, . . . , 66), what is the pmf of X the total number of times a die is rolled?...

Answered: 1 week ago

Question

★★★★★
Consider the following excerpts from Genentech's 2004 income statement and cash flow statement. From the 2004 income statement (in millions): Revenues ................... ? Costs and expenses Cost of...

Answered: 1 week ago

Question

★★★★★
Based on the data contained in Table A, what is the break-even point in units produced and sold? TABLE A. Average selling price per unit $15.00 Variable cost per unit $10.00 Units Sold 200,000 Fixed...

Answered: 1 week ago

Question

★★★★★
Consider the following cash flows: Year Cash Flow 0 $ 33,000 1 14,900 2 16,800 3 12,300 What is the IRR of the above set of cash flows? (Do not round intermediate calculations and enter your answer...

Answered: 1 week ago

Question

★★★★★
On October 1, Alice Rodstein started a consulting firm. The asset, liability, and stockholders' equity account balances after each of her first six transactions are shown below. Describe each of...

Answered: 1 week ago

Question

★★★★★
Prepare a Corrected Trial Balance The following trial balance for Hill Company has errors that cause it to be out of balance. Prepare a corrected version of the trial balance for Hill Company....

Answered: 1 week ago

Question

★★★★★
The following data apply to Smoot Sports Inc. for April 2011: 1. Balance per the bank on April \(30, \$ 12,250\). 2. Deposits in transit not recorded by the bank, \(\$ 2,100\). 3. Bank error; check...

Answered: 1 week ago

Question

★★★★★
Suppose that the domestic demand and supply for hats in a small open economy are given by. where Q denotes quantity and P denotes price. a. If the world price is 10, what is the free trade level of...

Answered: 1 week ago

Question

★★★★★
An analysis of the transactions of Pickett Shipping Services for the month of May appears below. Line 1 summarizes Pickett's accounting equation data as of May 1; lines 2-10 represent the...

Answered: 1 week ago

Question

★★★★★
(Appendices) Visit Consumer Reports online or obtain an issue from your library and answer the following questions: (a) Who publishes the magazine? (b) Who advertises in the magazine? (c) How are...

Answered: 1 week ago

Question

★★★★★
(Appendices) Compute unit prices for the following pairs and determine which of the two is the better deal: (a) 3 for $0.98 or 8 for $2.99, (b) 4 for $1.00 or 12 for $3.39, (c) 24 oz. for $1.98 or 36...

Answered: 1 week ago

Question

★★★★★
(Appendices) Read the warranty or guarantee for a household product that your family has purchased (examples: coffee maker, blender, or electronic device). What does the manufacturer agree to do?...

Answered: 1 week ago

Previous Question Next Question