Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You are given the following information concerning two stocks that make up an index. Price per Share Beginning of Year End of Year $44.6 $48.9

image text in transcribed

You are given the following information concerning two stocks that make up an index. Price per Share Beginning of Year End of Year $44.6 $48.9 75.1 84.1 Shares Outstanding 36,000 27,000 Kirk, Inc. Picard Co. a. Assume that you want to build a price-weighted index including the two stocks. Please calculate the beginning index and the end index. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Beginning Index: End Index: b. What is the return for the price-weighted index? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Index Return: % c. Assume that you want to rebuild a value-weighted index with the index value at the beginning of the year equal to 100. What is the index level at the end of the year? (Do not round intermediate calculations. Round your answer to 2 decimal places. Index Level at the end: d. What is the return of the value-weighted index? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Index Return: % e. Assume the value-weighted index has been existing for 10 years and the index level happened to be 411.16 at the beginning of the year. What is the index level at the end of the year? (Do not round intermediate calculations. Round your answer to 2 decimal places. Index Level at the end: f. What is the return of this existing value-weighted index? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Index Return: %

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_2

Step: 3

blur-text-image_3

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

The School Fundraising Handbook

Authors: Lindsey Marsh

1st Edition

1785834266, 978-1785834264

More Books

Students also viewed these Finance questions

Question

Discuss how customers influence the quality of goods and services

Answered: 1 week ago