Question

In: Finance

An index consists of the following securities. What is the value-weighted index return? What is the...

An index consists of the following securities. What is the value-weighted index return? What is the percentage value-weighted index return? (Round your answer to 2 decimal places. Do not round intermediate steps. Omit the "%" sign in your response.) Price per Share Stock Shares Outstanding Beginning of Year End of Year

H 3,000 $15 $23

I 7,500 13 10

J 3,000 33 35

Solutions

Expert Solution


Please Thumbs UP

THANKS

jeff jeffy answered 2 years ago
Next > < Previous

Related Solutions

With the following, what is the rate of return of period 1, if the index value is weighted?
An Index has the following stocks:StockPricePriceSharesSharesPQQ20252020HIP50251020LOP15132525With the following, what is the rate of return of period 1, if the index value is weighted?
What is the return of a market capitalization weighted and evenly weighted index of two stocks...
What is the return of a market capitalization weighted and evenly weighted index of two stocks with market prices of $30 and $50 that increase to $40 and $60 where the market capitalizations of each is $4 billion and $6 billion respectively at the beginning of the period? Please show work.
Which of the following indexes requires frequent rebalancing? [I] Value-weighted index [II] Price-weighted index [III] Equally-weighted...
Which of the following indexes requires frequent rebalancing? [I] Value-weighted index [II] Price-weighted index [III] Equally-weighted I only II only III only II and III only I, II and III An investor invests 60% of her wealth in the market portfolio with an expected rate of return of 12% and a variance of 0.01, and she puts the rest in Treasury bills that pay 2% per year. What is the standard deviation of the portfolio? 4% 6% 7.5% 10% None...
3 . Explain how we calculate the rate of return for a market-value weighted index. You...
3 . Explain how we calculate the rate of return for a market-value weighted index. You can show the formula and explain it. 4. Explain how we calculate the rate of return for an equally-weighted index. You can show the formula and explain it.
Assume the following information concerning two stocks that make up an index. What is the value-weighted...
Assume the following information concerning two stocks that make up an index. What is the value-weighted return for the index? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Price per Share Shares Outstanding Beginning of Year End of Year Kirk, Inc. 41,000 $ 75 $ 83 Picard Co. 35,500 116 121
In addition to price-weighted and value-weighted indexes, an equally weighted index is one in which the...
In addition to price-weighted and value-weighted indexes, an equally weighted index is one in which the index value is computed from the average rate of return of the stocks comprising the index. Equally weighted indexes are frequently used by financial researchers to measure portfolio performance. The following three defense stocks are to be combined into a stock index in January 2019 (perhaps a portfolio manager believes these stocks are an appropriate benchmark for his or her performance): Price Shares (millions)...
In addition to price-weighted and value-weighted indexes, an equally weighted index is one in which the...
In addition to price-weighted and value-weighted indexes, an equally weighted index is one in which the index value is computed from the average rate of return of the stocks comprising the index. Equally weighted indexes are frequently used by financial researchers to measure portfolio performance. The following three defense stocks are to be combined into a stock index in January 2019 (perhaps a portfolio manager believes these stocks are an appropriate benchmark for his or her performance): Price Shares (millions)...
In addition to price-weighted and value-weighted indexes, an equally weighted index is one in which the...
In addition to price-weighted and value-weighted indexes, an equally weighted index is one in which the index value is computed from the average rate of return of the stocks comprising the index. Equally weighted indexes are frequently used by financial researchers to measure portfolio performance. The following three defense stocks are to be combined into a stock index in January 2016 (perhaps a portfolio manager believes these stocks are an appropriate benchmark for his or her performance): Price Shares (millions)...
In addition to price-weighted and value-weighted indexes, an equally weighted index is one in which the...
In addition to price-weighted and value-weighted indexes, an equally weighted index is one in which the index value is computed from the average rate of return of the stocks comprising the index. Equally weighted indexes are frequently used by financial researchers to measure portfolio performance. The following three defense stocks are to be combined into a stock index in January 2016 (perhaps a portfolio manager believes these stocks are an appropriate benchmark for his or her performance): Price Shares (millions)...
The TriValue Index is a market value weighted index comprising of three stocks. The number of...
The TriValue Index is a market value weighted index comprising of three stocks. The number of shares outstanding and the closing stock prices for each of the stocks are given as follows: Number of shares outstanding Closing price yesterday Closing price today Stock A 350,000 $23 $23 Stock B 405,000 $43 $41 Stock C 553,000 $56 $58 The number of shares outstanding for the stocks does not change during the period. If the index was closed at 970 yesterday, what...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT