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In: Finance
Problem 4-01 You are given the following information regarding prices for a sample of stocks. PRICE...
Problem 4-01
You are given the following information regarding prices for a sample of stocks.
| PRICE | ||||||
| Stock | Number of Shares | T | T + 1 | |||
| A | 1,900,000 | $68 | $84 | |||
| B | 12,000,000 | 24 | 34 | |||
| C | 28,000,000 | 23 | 28 | |||
-
Construct a price-weighted index for these three stocks, and compute the percentage change in the index for the period from T to T + 1. Do not round intermediate calculations. Round your answer to two decimal places.
%
-
Construct a value-weighted index for these three stocks, and compute the percentage change in the index for the period from T to T + 1. Do not round intermediate calculations. Round your answer to two decimal places.
%
Solutions
jeff jeffy answered 3 hours agoRelated Solutions
eBook Problem 4-02 You are given the following information regarding prices for a sample of stocks....
eBook
Problem 4-02
You are given the following information regarding prices for a
sample of stocks.
PRICE
Stock
Number of Shares
T
T + 1
A
3,600,000
$60
$80
B
13,000,000
30
45
C
28,000,000
19
34
Construct an equal-weighted index by assuming $1,000 is invested
in each stock. What is the percentage change in wealth for this
portfolio? Do not round intermediate calculations. Round your
answer to two decimal places.
%
Compute the percentage of price change for each...
You are given the following information regarding prices for asample of stocks.PRICEStockNumber...
You are given the following information regarding prices for a
sample of stocks.PRICEStockNumber of SharesTT + 1A 2,700,000$64$78B14,000,000 26 41C26,000,000 22 28Construct an equal-weighted index by assuming $1,000 is invested
in each stock. What is the percentage change in wealth for this
portfolio? Do not round intermediate calculations. Round your
answer to two decimal places. %Compute the percentage of price change for each of the stocks.
Do not round intermediate calculations. Round your answers to two
decimal places.Stock A: %Stock B: %Stock C: %Compute the arithmetic mean of these...
Target ROE problem You are given the following information regarding KTC for 2019: RETURN ON ASSETS...
Target ROE problem You are given the following information
regarding KTC for 2019: RETURN ON ASSETS = 7.5% NET PROFIT MARGIN =
6.0% DEBT EQUITY RATIO = 1.5x SALES = $550,000.00 GROSS PROFIT RATE
= 50.0% TAX RATE = 34.0% 1) What must KTC project as its 2020's
sales in order to generate an additional 5% Return on Equity above
last year’s levels (2019’s ROE + 5%, not 2019’s ROE x 105%) 2)
Prepare a projected 2020 Profit and Loss...
Target ROE problem You are given the following information regarding KTC for 2019: RETURN ON ASSETS...
Target ROE problem
You are given the following information regarding KTC for
2019:
RETURN ON ASSETS = 7.5% NET PROFIT MARGIN = 6.0% DEBT EQUITY
RATIO = 1.5x SALES = $550,000.00 GROSS PROFIT RATE = 50.0% TAX RATE
= 34.0%
1) What must KTC project as its 2020's sales in order to
generate an additional 5% Return on Equity above last year’s levels
(2019’s ROE + 5%, not 2019’s ROE x 105%)
2) Prepare a projected 2020 Profit and Loss...
Given the sample information in the following table regarding public opinion on gun control. Opinion on...
Given the sample information in the following table regarding
public opinion on gun control.
Opinion on Gun Control
Party Affiliation Favor Oppose No Opinion Total
Democrats 90 98 46 234
Republicans 90 54 10 154
Total 180 152 56 388
You are given the following information about the stocks in a two-stock portfolio:
You are given the following information about the stocks in a two-stock portfolio:
Stock
Return
Portfolio Weight
Standard Deviation
The Blue Hotel, Inc.
22%
45%
9%
Joys Food, Inc.
25%
55%
11%
Correlation coefficient between the two stocks is 0.5.
Using the information above, calculate the following:
The expected return of the portfolio,
The variance of the portfolio,
The standard deviation of the portfolio.
（All calculations must be shown for intermediate calculations）
Given the following price and dividend information: A. calculate the sample variance for the returns. (Round...
Given the following price and dividend information:
A. calculate the sample variance for the returns. (Round to 4
decimals)
B. calculate the arithmetic average return. (Round to 4
decimals)
C.calculate the geometric average return. (Round to 4
decimals)
D.calculate the sample standard deviation for the returns.
(Round to 4 decimals)
Year
Price
Dividend
0
50.72
1
43.54
1.75
2
49.22
2.10
3
51.30
2.20
4
52.45
2.50
5
56.35
2.75
You are given the following information concerning two stocks that make up an index.
- Problem 5-7 Index Level (LO4, CFA2)You are given the following information concerning two stocks
that make up an index. Assume the value-weighted index level was
211.98 at the beginning of the year. What is the index level at the
end of the year? (Do not round intermediate calculations.
Round your answer to 2 decimal places.)Price per ShareShares OutstandingBeginning of YearEnd of YearKirk, Inc.34,000$54$61Picard Co.32,5007985Index Level = ______- Problem 5-14 Price-Weighted Indexes (LO4, CFA2)The following three defense stocks are to...
Assume that you construct a price weighted index of 30 stocks. The sum of the prices...
Assume that you construct a price weighted index of 30 stocks.
The sum of the prices of these stocks is $2000. The divisor for
this index is 30, and the value of this index is 100. Now assume
that one of the 30 stocks, with an average price of $100, has a
three-for-one stock split while the value of other stocks remains
unchanged.
a) If you make no adjustments to the index, what will be the new
value of the...
Given the year end prices of the following stocks, estimate the expected return of a portfolio...
Given the year end prices of the following stocks, estimate the
expected return of a portfolio of 30% AAA and 70% BBB. Enter your
answer as a percent without the % sign. Round your final answer to
two decimals.
Year
AAA
BBB
2006
100
55
2007
105
65
2008
120
60
2009
110
70
2010
130
65
2011
160
80
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