Question

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2) An analyst gathers the following information for a market capitalization (value) weighted index comprised of...

2) An analyst gathers the following information for a market capitalization (value) weighted index comprised of securities MNO, QRS, and XYZ:

Stock

P0 (¥)

P1 (¥)

DPS*

Shares Outstanding

MNO

2,500

2,700

100

5,000

QRS

3,500

2,500

150

7,500

XYZ

1,500

1,600

100

10,000

*DPS= Dividends per share

  1. (1 point) What is the price return of the index?
  2. (1 point) What is the total return of the index?

Solutions

Expert Solution

Hence, price of the index as of P1 is 2257.51 and total return of the index is -5.35%.

jeff jeffy answered 1 year ago
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