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The following chart provides price (P) and number of shares outstanding (Q) data for stocks A,...

The following chart provides price (P) and number of shares outstanding (Q) data for stocks A, B, and C at the end of year 0 and at the end of year1.

P0 Q0 P1 Q1

A 45 100 50 100

B 60 150 50 150

C 28 200 35 200

What are the equal-, price-, and value-weighted returns on an index comprised of A, B and C?

Equal weighted return Price weighted return Value weighted return A. 2.09% B. 1.5% C. 6.48%

Solutions

Expert Solution

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

EQUAL WEIGHTED INDEX : C : 6.48%

PRICE WEIGHTED INDEX : B : 1.5%

VALUE WEIGHTED INDEX : A : 2.09%

jeff jeffy answered 4 months ago
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