will thumbs up

Consider the three stocks in the following table. Pt represents price at time t, and Q1 represents shares outstanding at time t. Consider a price-weighted index. If the divisor =3, a. What is the index value at time 0 ? What is the index value at time 1 ? What is the percentage change in the index value? b. Calculate the rate of return on a price-weighted portfolio of the three stocks for the period (from t=0 to t=1 ). c. Compare a) and b) Consider a value-weighted index. If the divisor =3, a. What is the index value at time 0? What is the index value at time 1 ? What is the percentage change in the index value? b. Calculate the rate of return on a value-weighted portfolio of the three stocks for the period (from t=0 to t=1 ). c. Compare a) and b) Suppose that you hold the following expectation regarding a stock you invest in. I What is the mean and standard deviation of the return on this stock. Suppose the risk-free rate is 3%. What is the Sharpe ratio of your stock