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You are given the following information concerning two stocks that make up an index. Price per Share Shares Beginning of Outstanding Year End of Year
You are given the following information concerning two stocks that make up an index. Price per Share Shares Beginning of Outstanding Year End of Year Kirk, Inc. 38,000 $ 46 $ 51 Picard Co. 34,000 76 82 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 Retur: e. Assume the value-weighted index has been existing for 10 years and the index level happened to be 311.05 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 Retur
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