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	P_{0 (¥)}	P_{1 (¥)}	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 point) What is the price return of the index?
(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 6 hours ago

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