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investment 100,000 million investment was 100 million ** Susanne constructed a value-weighted index portfolio of AMZN, INTL, and CMCSA stocks last month (t=0) when the
investment 100,000 million
investment was 100 million **
Susanne constructed a value-weighted index portfolio of AMZN, INTL, and CMCSA stocks last month (t=0) when the stock prices were $3156.13, $50.32, and $46.46, respectively. The number of shares outstanding is 0.5 billion for AMZN, 4.25 billion for INTL, and 4.64 billion for CMCSA Today's stock prices (t=1) are $3,286.42, $52.97, and $44.95, respectively. There were neither dividend payments nor any changes in the number of shares outstanding. Tim constructed a portfolio at the same time using the same three stocks as Susanne but he constructed an equally weighted index portfolio 1) What is the return on Susanne's value-weighted index? 2) What is the return on Tim's equally-weighted index? You should show all steps and calculations to find the answer to earn full credit. Hint: It does not matter how much Susanne and Tim invested in their portfolios because I am asking you to calculate returns Step by Step Solution
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