Questions 4, 5

They related to each other

You are given the following information concentrating stock the make up an index. What is the price weighted return for the index? 5. Calculate the index return for the information in previous problem using a value-weighted index. 6. In Problem 5, assume that you want to reindex with the index value at the beginning of the year equal to 100. What is the index level at the end of the year? 7. In Problem 5. assume the value-weighted index level was 408.16 at the beginning of the year What is the index level at the end of the year? 8. Suppose you calculated the total market value of the stocks in the index over a five-year period: Year 1: 4.387 million Year 2:4.671 million Year 3: 5.032 million Year 4:4.820 million Year 5: 5.369 million Suppose you wanted the index to sun at 1.000 What would the reindexed values be? 9. Look back at Problem Assume that Able undergoes was 1-for-2 reverse stock split. What is the new divisor? 10. The divisor at that time was 1321293. Suppose on this day the price for 29 of the stocks remained unchanged and one stock increased $.5.00 What would the DJIA level be at the end of the day