Question
Stock K: Year1 - $20 Price, 105M Shares Outstanding; Year2 - $29 Price, 105M SO Stock M: Year1 - $86 Price, 2M Shares Outstanding; Year2
Stock K: Year1 - $20 Price, 105M Shares Outstanding; Year2 - $29 Price, 105M SO
Stock M: Year1 - $86 Price, 2M Shares Outstanding; Year2 - $46. Price, 4M SO
Stock R: Year1 - $35 Price, 28M Shares Outstanding; Year2 - $40 Price, 28M SO
A. Compute the beginning and ending values for a price-weighted index and a market-value-weighted index. Assume a base value of 100 and Year 1 as the base period. Do not round intermediate calculations. Round your answers to two decimal places.
- PWIYear 1:_______
- PWIYear 2:________
- VWIYear 1:________
- VWIYear 2:________
B. Compute the percentage change in the value of each index during the year. Do not round intermediate calculations. Round your answers to two decimal places.
- Percentage change in PWI:_____%
- Percentage change in VWI:_______%
C. Compute the percentage change for an unweighted index assuming $1,000 is invested in each stock. Do not round intermediate calculations. Round your answer to two decimal places.
__________%
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