A price weighted index is composed of two stocks. After
experiencing a 3:1 split, stock one...
A price weighted index is composed of two stocks. After
experiencing a 3:1 split, stock one is priced at $22.25. Stock two
is priced at $208.25. The original divisor of the index is 2.0.
Compute the new divisor.
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1)
A price-weighted Index M consists of 3 stocks X, Y and Z. Last
year their stock prices were $50, 15, and 22 respectively.
What is the new price-weighted index this year given that Stock
X split 5-for-1 last year, and their current prices are $14, 17,
21?
A) 32.09
B) 29.14
C)15.88
D)17.33
2)A price-weighted Index ABC consists of 3 stocks A, B and C.
Their recent prices are $105, 134, and 400 respectively. What is
the new adjusted...
You construct a price-weighted index of 55 stocks. At the
beginning of the day, the index is 8,710.44. During the day, 54
stock prices remain the same, and 1 stock price increases $5.40. At
the end of the day, your index value is 8,757.89. What is the
divisor on your index?
There are two stocks, A and B, which make up a particular
price-weighted index. Below are the closing prices and number of
shares outstanding for each stock for yesterday and today. Stock B
split 3-for-1 today before the market opened. What is the value of
the index after the close today if the index contains stocks A and
B and closed yesterday at 115.00 (before stock B split
3-for-1)?
Yesterday
Today
Closing price of stock
A
$150
$162...
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.
1- A portfolio is composed of two stocks, A and B. Stock A has a
standard deviation of return of 28%, while stock B has a standard
deviation of return of 22%. Stock A comprises 60% of the portfolio,
while stock B comprises 40% of the portfolio. If the variance of
return on the portfolio is .050, the correlation coefficient
between the returns on A and B is _________ . a) .190 b) .285 c)
.104 d ) .475
2-...
A price-weighted index is comprised of three stocks. Yesterday
the three stocks were priced at $15, $20, and $32. The number of
outstanding shares for each is 500 shares, 2,000 shares, and 1,000
shares, respectively. If the stock prices changed to $16, $15, and
$38 today respectively, what is the 1-day rate of return on the
index?
① 2.7% ② 3.0% ③ 3.3% ④ 3.6%
The ICAN (Index of Companies with Animal Names) is a
price-weighted stock index,
comprised of the five companies shown below. None of the companies
pay
dividends.
Company Name
Share Price 1/1/2022
Share Price 1/1/23
Toucan Tech
$12.40
$14.75
Manatee
$68.00
$61.75
Iguana
$101.50
$166.25
Koala
$43.33
$50.00
Penguin
$310.00
$400.00
The ICAN index on January 1, 2022 was 1784.10. On January 1, 2023,
the ICAN
index rose to 2309.17. The ICAN rate of return was therefore 29.43%
over this
period....
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 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 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)...