Question
Problem 4-02 You are given the following information regarding prices for a sample of stocks. PRICE Stock Number of Shares T T + 1 A
Problem 4-02
You are given the following information regarding prices for a sample of stocks.
| PRICE | ||||||
| Stock | Number of Shares | T | T + 1 | |||
| A | 1,600,000 | $72 | $86 | |||
| B | 13,000,000 | 28 | 43 | |||
| C | 28,000,000 | 15 | 24 | |||
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Construct an equal-weighted index by assuming $1,000 is invested in each stock. What is the percentage change in wealth for this portfolio? Do not round intermediate calculations. Round your answer to two decimal places.
%
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Compute the percentage of price change for each of the stocks. Do not round intermediate calculations. Round your answers to two decimal places.
Stock A: %
Stock B: %
Stock C: %
Compute the arithmetic mean of these percentage changes. Do not round intermediate calculations. Round your answer to two decimal places.
%
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Compute the geometric mean of the percentage changes in Part b. Do not round intermediate calculations. Round your answer to two decimal places.
%
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