Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Question (1): The table below presents information about 5 stocks. Stock Price March t0 $43 Quantity March t=0 25 Price April El Quantity April t=1
Question (1): The table below presents information about 5 stocks. Stock Price March t0 $43 Quantity March t=0 25 Price April El Quantity April t=1 25 Price May t=2 $32 Quantity May t2 20 Price June t=3 $32 Quantity June t=3 20 $28 30 ? ? ? ? 90 100 $26 100 B $88 30 $111 $25 90 $27 D $98 300 $111 E $29 10 $31 Note: Numbers are in millions of $ $26 $110 $35 300 $110 300 10 300 10 $35 10 A. Calculate the rate of return for a market value-weighted index for the first period (March till April). Among the 5 stocks, which stock's price change can affect the stock index the most? Why? B. Calculate the price of a price-weighted index for April C. In May, stock B splits 3-for-1. Calculate the price of a price-weighted index in May (Taking the stock split into account). D. What is the rate of return on a price-weighted index for the second period (April to May)? E. Calculate the rate of return for an equally weighted index for the last period (May to June) Question (1): The table below presents information about 5 stocks. Stock Price March t0 $43 Quantity March t=0 25 Price April El Quantity April t=1 25 Price May t=2 $32 Quantity May t2 20 Price June t=3 $32 Quantity June t=3 20 $28 30 ? ? ? ? 90 100 $26 100 B $88 30 $111 $25 90 $27 D $98 300 $111 E $29 10 $31 Note: Numbers are in millions of $ $26 $110 $35 300 $110 300 10 300 10 $35 10 A. Calculate the rate of return for a market value-weighted index for the first period (March till April). Among the 5 stocks, which stock's price change can affect the stock index the most? Why? B. Calculate the price of a price-weighted index for April C. In May, stock B splits 3-for-1. Calculate the price of a price-weighted index in May (Taking the stock split into account). D. What is the rate of return on a price-weighted index for the second period (April to May)? E. Calculate the rate of return for an equally weighted index for the last period (May to June)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started