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The following table represents three stocks trading in ASX. Consider that Price (t) represents the price at time t, and Share outstanding (t) denotes
The following table represents three stocks trading in ASX. Consider that Price (t) represents the price at time t, and Share outstanding (t) denotes the shares outstanding at time t. In the last period, the Stock-Z splits to two-for-one. Stock-X Stock-Y Stock-Z Price Share outstanding (0) Price (1) Share outstanding (1) Price (2) 110 105 110 105 210 55 55 210 120 65 100 60 110 210 210 Share outstanding (2) 110 210 410 Calculate the rate of return on a price-weighted index of the stock X/Y & Z for the first period (1=0 to 1=1) and second period (1=1 to 1=2) Calculate the price of the treasury bill? ii. Calculate its bond equivalent yield? b. APad Ltd decided to purchase a treasury bill, which has $15,000 face value and only 112 days to maturity. And it is selling at a 4.5% bank discount ask yield. i. c. Financial assets are not a component of national wealth, but it is identified as a component of household wealth. Explain.
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