In: Finance
You are given the following information. Please use it for the following
31-Dec-16 | 31-Dec-16 | 31-dec-17 | 31-Dec-17 | |
stock | Price | Shares | Price | Shares |
w | 50$ | 10000 | 25$ | 20000 |
x | 40$ | 5000 | 25$ | 10000 |
y | 20$ | 20000 | 30$ | 20000 |
z | 30$ | 15000 | 40$ | 15000 |
Stocks W and X had 2 for 1 splits on December 31, 2016. The information in the table
for 2016 is pre-split.
3.4 Calculate the price weighted series for Dec 31, 2016, prior to the splits.
3.5 Calculate the price weighted series for Dec 31, 2016, after the splits.
3.6 Calculate the price weighted series for Dec 31, 2017.
a.
Calculate the value weighted index for Dec 31, 2016, prior to the splits. Assume a base
index value of 100. The base year is Dec 31, 2016.
b.
Calculate the value weighted index for Dec 31, 2016, after the splits. Assume a base index
value of 100. The base year is Dec 31, 2016.
3.8 Calculate the value weighted index for Dec 31, 2017. Assume a base index value of
100. The base year is Dec 31, 2016.
3.9
a.
Calculate the unweighted index for Dec 31, 2016, prior to the splits. Assume a base index
value of 100. The base year is Dec 31, 2016.
b.
Calculate the unweighted index for Dec 31, 2016, after the splits. Assume a base index
value of 100. The base year is Dec 31, 2016.
3.10 Calculate the unweighted index (geometric mean) for Dec 31, 2017. Assume a base
index value of 100. The base year is Dec 31, 2016.
3.4 Price weighted series for Dec 31, 2016 before splits = (50+40+20+30)/4 = 35
3.5 Price weighted series for Dec 31, 2016 after splits would remain the same as one with beofre the splits i.e. 35. Only the divisor is changed. The new divisor would be = (25+20+20+30)/35 = 2.71
3.6 Price weighted series for Dec 31, 2017 = (25+25+30+40)/2.71 = 44.21
3.7 a Value wieghted index before splits would be 35.16 (as calculated below)
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3.7 b
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