Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 25 4 pts Suppose there is a price-weighted index composed of three stocks A, B, and C. Now stock A is replaced by stock

image text in transcribed
image text in transcribed
Question 25 4 pts Suppose there is a price-weighted index composed of three stocks A, B, and C. Now stock A is replaced by stock D. The price information for these stocks at the time of change is as follows Prices Stocks CO a 23 39 58 You have a portfolio tracking the performance of this index, currently with 12,000 shares in each of stocks A, B and C. After the index component changes, you need to se shares of a shares of shares of Cand buy shares of D. 12.000.000.000.000 5000 5000 5000000 on 5000 5000 7500 4 pts Question 25 Suppose there is a price-weighted index composed of three stocks A, B, and C. Now stock A is replaced by stock D. The price information for these stocks at the time of change is as follows. Stocks B Prices 8 23 39 58 D You have a portfolio tracking the performance of this index, currently with 12,000 shares in each of stocks A, B and C. After the index component changes, you need to sell shares of 8. shares of Cand buy shares of D. shares of A 12.000.000.000 5.000 5.000 5.000 5000 5000 11.000 0 0 7.000 12.000 5000 5.000 7600 7000 7000 7000 7000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Finance Without Fear Business Forecasting Workbook

Authors: William S. Hettinger, John Dolan Heitlinger

1st Edition

0982891717, 9780982891711

More Books

Students also viewed these Finance questions

Question

using signal flow graph

Answered: 1 week ago