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Question 1 An analyst tracks three stocks (A, B, and C): Beginning of period Price Quantity Stock A 10 200 Stock B 20 150 Stock
Question 1 An analyst tracks three stocks (A, B, and C): Beginning of period Price Quantity Stock A 10 200 Stock B 20 150 Stock C 25 110 End of period Price Quantity 12 200 21 150 26 110 For example, at the beginning of the period stock A traded at $10 per share, and at the end of the period it traded for $12 per share. Answer the following questions: a) Calculate each stock's return. b) Calculate each stock's value weights (market cap). c) What is the equal-weighted total return of this index? d) What is the value-weighted (market cap weights) total return of this index? e) Why is the equal-weighted return higher than the value-weighted return
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