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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
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.) %
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