Question

In: Finance

Which of the following are examples of market value indexes? I. S&P 500 stock index II....

Which of the following are examples of market value indexes? I. S&P 500 stock index II. Dow Jones Industrial Index III. NASDAQ index IV. Wilshire 5000 Index

A. I

B. II

C. I and III

D. I, III, and IV

Solutions

Expert Solution

Dow Jones Industrial index is a price weighted index whereas all the other indexes like standard and poor 500 stock index and Nasdaq along with wilshire 5000 index are all valuue Weighted and market capitalised index.

Correct answer will be option (D) I,III and IV.


Related Solutions

The S&P 500, or simply the S&P, is a stock market index that measures the stock...
The S&P 500, or simply the S&P, is a stock market index that measures the stock performance of 500 large companies listed on stock exchanges in the United States. define an adequate investment strategy, and select the assets they would invest to start with. -the potential customer profile specifications (SAP 500), -the portfolio objectives -the investment policies (strategic allocation) -The choice and justification of a benchmark -a trial portfolio based on the team investment guidelines -a brief evaluation on each...
Question 1 Will the stock market, as represented by the S&P 500 index, enjoy a positive...
Question 1 Will the stock market, as represented by the S&P 500 index, enjoy a positive return? Question 1 options: Yes No Question 2 Will interest rates, as measured by the 10-year Treasury bond yield, increase or decrease? Question 2 options: Increase Decrease Question 3 Please order the following stocks by your expectation of their total return (from highest to lowest). Question 3 options: CSCO (Cisco) AAL (American Airlines) WMT (Walmert) GM (General Motors)    ZM (Zoom) Question 4 Euro...
Will the stock market get positive returns? (as represented by the S&P 500 index) Yes or...
Will the stock market get positive returns? (as represented by the S&P 500 index) Yes or No
Suppose the value of the S&P 500 Stock Index is currently $3,350. a. If the one-year...
Suppose the value of the S&P 500 Stock Index is currently $3,350. a. If the one-year T-bill rate is 4.6% and the expected dividend yield on the S&P 500 is 4.2%, what should the one-year maturity futures price be? (Do not round intermediate calculations. Round your answer to 2 decimal places.) b. What would the one-year maturity futures price be, if the T-bill rate is less than the dividend yield, for example, 3.2%? (Do not round intermediate calculations. Round your...
Consider a three month futures contract on the S&P 500 index. The value of the index...
Consider a three month futures contract on the S&P 500 index. The value of the index is 1000; the dividend yield is 1% and the three month interest rate is 4% continuously compounded. (a) Explain how to compute the futures price making sure to define all terms and assumptions. In particular carefully explain why the formula holds. Then compute the fair futures price. (b) Suppose the actual futures price is 1010.0. In great detail describe a strategy that creates guaranteed...
You are contemplating investments in the stock of Clorox and in the S&P 500 index (a...
You are contemplating investments in the stock of Clorox and in the S&P 500 index (a collection of stocks approximately representing the overall market). The Clorox required return (calculated using the capital asset pricing model or CAPM) is 18%, the Clorox beta is .95, and its bonds are rated A. The standard deviation of returns for Clorox stock is 14%. Its payout ratio is 65% and its sales are expected to grow by 7% during the next year. The S&P...
Suppose the value of the S&P 500 Stock Index is currently $2,050. If the one-year T-bill...
Suppose the value of the S&P 500 Stock Index is currently $2,050. If the one-year T-bill rate is 5.5% and the expected dividend yield on the S&P 500 is 5.0%. a. What should the one-year maturity futures price be? (Do not round intermediate calculations.) Futures price            $ b. What would the one-year maturity futures price be, if the T-bill rate is less than the dividend yield, for example, 4.0%? (Do not round intermediate calculations.) Futures price   
Returns for a firm’s stock and the S&P 500 index for the last four years are...
Returns for a firm’s stock and the S&P 500 index for the last four years are given in the table below. Estimate the firm’s equity beta coefficient. Please show work. First row is individual stock returns second row is SP500 returns Y1 Y2 Y3 Y4 -.01 .25 .18 .14 .03 .17 .12 .08
SPY and XIU are ETFs tracking the S&P 500 and S&P/TSX 60 index, which are often...
SPY and XIU are ETFs tracking the S&P 500 and S&P/TSX 60 index, which are often used as proxies for the U.S. and Canadian stock markets, respectively. From a set of their historical data, the annual expected returns and standard deviations of those two ETFs and their covariance are estimated as follows: SPY: E(r)= 0.15 σ=0.28 XIU: E(r)= 0.18 σ=0.32 Covariance between SPY and XIU = 0.0618 Suppose that you have $10 million to invest for one year and you...
You estimate that a passive portfolio invested to mimic the S&P 500 stock index yields an...
You estimate that a passive portfolio invested to mimic the S&P 500 stock index yields an expected rate of return of 10% with a standard deviation of 19%. Assume you manage a risky portfolio with an expected rate of return of 12% and a standard deviation of 24%. The T-bill rate is 5%. Your client would like to switch an 80% allocation in your portfolio to an 80% allocation in the stock market index. How much return would your client...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT