Part 3 and Part 4

The Tiny stock market has two stocks. Company A and Company B. End-of day data for three days are shown in the table. The Tiny Market Index is a value-weighted index on the Tine market Answer the questions that follow Company A Company B # of Shares Day Hot Shares Price Price Outstanding Outstanding 1 S8 500 $11 1,900 2 $8.56 500 $12.1 1,900 3 $8.817 500 $12.705 1,900 Part 1: You created a portfolio on Day 1 to mimic the index. What is the portfolia weight on Company A? Express your answer in percentage farm rounded to two decimal places. 16 % Part 2 Calculate the return on the Tiny Market Index and the return on your mimic portfolio from Day 1 to Day 2. What is the cifference? [Portfolio return minus Tiny Market Index return.) Express your answer in percentage form rounded to two decimals. Part 3: What portfolio weight for Company A do you need to have on Day 2 in order to earn a return on your mimic portfolio from Day 2 to Day 3 which is equal to the percentage change in the Tiny Market Index? Express your answer in percentage for rounded to two decmals. 16 * * Part 4: What trades did you have to make on Day 2 to adjust your portfolio so that it tracked the index from Day 2 to Day 3? buy A and sell sell A and buy B no trades