Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Suppose that we construct a market value-weighted index of three stocks. We have the following information one month ago about these stocks: ConocoPhillips (COP): market
Suppose that we construct a market value-weighted index of three stocks. We have the following information one month ago about these stocks:
- ConocoPhillips (COP): market value weight = 0.20; share price = $69
- ExxonMobil Corp. (XOM): market value weight = 0.50; share price = $86
- Halliburton Co. (HAL): market value weigh = 0.30; share price = $47
Today, we have the following information:
- ConocoPhillips (COP): share price = $80; dividend per share just paid: $1
- ExxonMobil Corp. (XOM): share price = $93; dividend per share just paid: $1
- Halliburton Co. (HAL): share price = $63; dividend per share just paid: $2
What is the total return on a market value-weighted portfolio of the three stocks for this past month?
Enter your answer as a decimal rate of return. Enter 3 decimal places of accuracy. If the portfolio return is negative, then include a minus sign in your answer. (If positive, do not include a sign.)
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