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Do your calculation in Excel Suppose all possible investment opportunities in the world are limited to the five stocks listed in the table below. What
Do your calculation in Excel Suppose all possible investment opportunities in the world are limited to the five stocks listed in the table below. What are the market portfolio weights? Construct a value-weighted index based on these five stocks listed above. If one stock in a value-weighted portfolio goes up price and all other stock prices remain the same, what trades are necessary to keep the portfolio value weighted? Discuss the case for the following scenarios: (a) Stock A goes up by 35%. (b) Stock B goes up by 20%. (c) Stock C goes up by 50%. (d) Stock D goes up by 5%. (e) Stock E goes up by 10%. STOCKS PRICE PER SHARE NUMBER OF SHARE OUTSTANDING $10 10 million B $20 12 million C $8 3 million D $50 1 million E $45 20 million Do your calculation in Excel Suppose all possible investment opportunities in the world are limited to the five stocks listed in the table below. What are the market portfolio weights? Construct a value-weighted index based on these five stocks listed above. If one stock in a value-weighted portfolio goes up price and all other stock prices remain the same, what trades are necessary to keep the portfolio value weighted? Discuss the case for the following scenarios: (a) Stock A goes up by 35%. (b) Stock B goes up by 20%. (c) Stock C goes up by 50%. (d) Stock D goes up by 5%. (e) Stock E goes up by 10%. STOCKS PRICE PER SHARE NUMBER OF SHARE OUTSTANDING $10 10 million B $20 12 million C $8 3 million D $50 1 million E $45 20 million
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