investment

III Calculation questions (104) 1. Answer the following questions according to the table below 1) What is the price weighted index composed of these three stocks? 2) What is the market capitalization weighted index composed of these three stocks (the divisor is 1000 )? 3) Assuming that the annual returns of the three stocks are 18%,6% and 30% respectively, and there is no dividend or stock division, calculate the return of the capitalization weighted index? 2. Suppose that within one year from now, the probability distribution of the stock price of American Applied Materials company is shown in the table below 1) If you buy the stock of Applied Materials at $50 per share today, and the stock will pay a dividend of $3 per share this year, what is your holding period yield 2) If the risk premium of Applied Materials is 29%, what is the risk-free interest rate