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Susanne constructed a value-weighted index portfolio of AMZN, INTL, and CMCSA stocks last month (0) when the stock prices were $3156.13. $50.32, and $46.46, respectively.
Susanne constructed a value-weighted index portfolio of AMZN, INTL, and CMCSA stocks last month (0) when the stock prices were $3156.13. $50.32, and $46.46, respectively. The number of shares outstanding is 0.5 billion for AMZN. 4.25 billion for INTL, and 4.64 billion for CMCSA Today's stock prices (t+1) are $3.286.42, $52.97, and $44.95, respectively. There were neither dividend payments nor any changes in the number of shares outstanding. Tim constructed a portfolio at the same time using the same three stocks as Susanne but he constructed an equally weighted index portfolio 1) What is the return on Susanne's value-weighted index? 2) What is the return on Tim's equally weighted index? You should show all steps and calculations to find the answer to earn full credit Hint: It does not matter how much Susanne and Tim invested in their portfolios because I am asking you to calculate returns. However if you want to use how much money they invested in their portfolios for convenience in your calculations, you can choose any amount $100 million, for example
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