Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The Tiny stock market has two companies listed on the exchange. Data for the two shares is given in the table below. The Tiny Market

image text in transcribed

The Tiny stock market has two companies listed on the exchange. Data for the two shares is given in the table below. The Tiny Market Index (TMI) is value-weighted and its base day is Day 1. You hold a portfolio with one share of company A and three shares of company B. Company A Company B Day Price # of Shares Price # of Shares 1 $8.00 900 $12.00 2,683 2 $8.64 900 $13.56 2,683 Express your answers to the following questions in percentage form rounded to one decimal. 1. What is the return on your portfolio from Day 1 to Day 2? 2. What is the difference between the return on your portfolio and the return on the TMI from Day 1 to Day 2? (Your return minus the index return.) % 3. What is the difference between the weight of company A in the TMI and the weight of Company A in your portfolio? (Your weight minus the index weight.) %

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Short Term Financial Management

Authors: Terry S. Maness, John T. Zietlow

2nd Edition

0030315131, 978-0030315138

More Books

Students also viewed these Finance questions

Question

What is management growth? What are its factors

Answered: 1 week ago

Question

4. Label problematic uses of language and their remedies

Answered: 1 week ago