Suppose the following three defense stocks are to be combined into a stock index in January 2007 (perhaps a portfolio manager believes these stocks are an appropriate benchmark for his or her performance) a Calculate the initial value of the index if a price weighting scheme is used b What is the r...

a 1107 Index value 103 45 743 7400 b ...

Suppose the following three defense stocks are to be combined into a stock index in January 2007

Question:

Suppose the following three defense are to be combined into a stock index in January 2007 (perhaps a manager believes these are an appropriate benchmark for his or her performance):

Suppose the following three defense stocks are to be combined

a. Calculate the initial value of the index if a price-weighting scheme is used.
b. What is the rate of return on this index for the year ending December 31, 2008? For the year ending December 31,2009?

Stocks
Stocks or shares are generally equity instruments that provide the largest source of raising funds in any public or private listed company's. The instruments are issued on a stock exchange from where a large number of general public who are willing... Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...