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Initial End of Year 1 110 End of Year 2 100 End of Year 3 58 100 45 104 50 100 500 105 130 110

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Initial End of Year 1 110 End of Year 2 100 End of Year 3 58 100 45 104 50 100 500 105 130 110 120 1100 Prices Stock A Stock B Stock C Stock D Stock E Quantity of shares Stock A Stock B Stock C 4 600 2.5 End of Year 1 2 End of Year 2 1200 1.9 End of Year 3 100 Initial 50 50 50 50 50 25 25 40 40 40 40 10 10 5 5 Stock D 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. Under each of the following techniques, the portfolio annualized return is closest to: Price weighted Market Value weighted Equally weighted 5% 1% 3% B. 6% 2% 5% C. 7% 6% 7% A. 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 Initial End of Year 1 110 End of Year 2 100 End of Year 3 58 100 45 104 50 100 500 105 130 110 120 1100 Prices Stock A Stock B Stock C Stock D Stock E Quantity of shares Stock A Stock B Stock C 4 600 2.5 End of Year 1 2 End of Year 2 1200 1.9 End of Year 3 100 Initial 50 50 50 50 50 25 25 40 40 40 40 10 10 5 5 Stock D 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. Under each of the following techniques, the portfolio annualized return is closest to: Price weighted Market Value weighted Equally weighted 5% 1% 3% B. 6% 2% 5% C. 7% 6% 7% A. 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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