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