Question

In: Finance

Suppose that a stock index is constructed with three stocks priced at $7, $43, and $56....

Suppose that a stock index is constructed with three stocks priced at $7, $43, and $56. The number of outstanding shares for each is 500,000 shares, 405,000 shares, and 553,000 shares, respectively. Today the prices for each stock are changed to $14, $44, and $52 and the number of outstanding shares for each are changed to 250,000 shares, 405,000 shares and 553,000 shares today, what is the price weighted index value today if the index yesterday was 10,500?

Solutions

Expert Solution


Related Solutions

part 1 - Suppose that a stock index is constructed with three stocks priced at $7,...
part 1 - Suppose that a stock index is constructed with three stocks priced at $7, $43, and $56. The number of outstanding shares for each is 500,000 shares, 405,000 shares, and 553,000 shares, respectively. Today the prices for each stock are changed to $14, $44, and $52 and the number of outstanding shares for each are changed to 250,000 shares, 405,000 shares and 553,000 shares today, what is the price weighted index value today if the index yesterday was...
A benchmark index has three stocks priced at $7, $43, and $56. The number of outstanding...
A benchmark index has three stocks priced at $7, $43, and $56. The number of outstanding shares for each is 500,000 shares, 405,000 shares, and 553,000 shares, respectively. 1) If the market value weighted index was 2560 yesterday and the prices changed to $23, $41, and $58 today, what is the new index value? 2) If the prices changed to $3.5, $44, and $52 and the number of outstanding shares for each changed to 1,000,000 shares, 405,000 shares and 553,000...
"A benchmark index has three stocks priced at $23, $43, and $56. The number of outstanding...
"A benchmark index has three stocks priced at $23, $43, and $56. The number of outstanding shares for each is 350000 shares, 405000 shares, and 553000 shares, respectively. Suppose the price of these three stocks changed to $23, $51, and $58 and number of outstanding shares did not change, what is the value-weighted index return?" 0.72% 7.39% 8.20% 7.70%
7)A benchmark market value index is comprised of three stocks.Yesterday the three stocks were priced...
7)A benchmark market value index is comprised of three stocks. Yesterday the three stocks were priced at $26, $36, and $80. The number of outstanding shares for each is 800,000 shares, 700,000 shares, and 400,000 shares, respectively. If the stock prices changed to $30, $34, and $82 today respectively, what is the 1-day rate of return on the index?2.31%3.91%5.22%3.33%8)What is the tax exempt equivalent yield on a 9% bond yield given a marginal tax rate of 24%?Multiple Choice6.84%7.26%11.84%9.00%
A price-weighted index is comprised of three stocks. Yesterday the three stocks were priced at $15,...
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%
A benchmark market value index is comprised of three stocks. Yesterday the three stocks were priced...
A benchmark market value index is comprised of three stocks. Yesterday the three stocks were priced at $24, $34, and $75. The number of outstanding shares for each is 790,000 shares, 690,000 shares, and 390,000 shares, respectively. If the stock prices changed to $28, $32, and $77 today respectively, what is the 1-day rate of return on the index .
A benchmark market value index is comprised of three stocks. Yesterday the three stocks were priced at $18, $26, and $60.
A benchmark market value index is comprised of three stocks. Yesterday the three stocks were priced at $18, $26, and $60. The number of outstanding shares for each is 650,000 shares, 550,000 shares, and 250,000 shares, respectively. If the stock prices changed to $22, $24, and $62 today respectively, what is the 1-day rate of return on the index? 5.77% 7.77% 4.88% 3.66%
An equally weighted index has three stocks A, B, and C priced at $10, $20, and...
An equally weighted index has three stocks A, B, and C priced at $10, $20, and $20 yesterday, respectively. Yesterday, stock A has a split where one share split into 2 and the price was reduced from $10 to 5. If the equally weighted index was 100 yesterday and the prices changed to $6, $18, and $17, what is the new index value? 16.11 102.54 89.6 98.33
A benchmark index has three stocks priced at $40, $63, and $73. The number of outstanding...
A benchmark index has three stocks priced at $40, $63, and $73. The number of outstanding shares for each is 435,000 shares, 575,000 shares, and 723,000 shares, respectively. If the market value weighted index was 950 yesterday and the prices changed to $40, $59, and $77 today, what is the new index value? Multiple Choice 945 950 955 940
Suppose Stocks A, B and C are the only three component stocks in a benchmark index....
Suppose Stocks A, B and C are the only three component stocks in a benchmark index. The number of shares outstanding of Stocks A, B and C are 371,000 shares, 312,000 shares, and 234,000 shares, respectively. The prices of Stocks A, B and C for Days 1, 2, 3 and 4 are given in the table below: Stock A Stock B Stock C Day 1 30.37 41.70 81.85 Day 2 31.03 40.61 78.65 Day 3 32.05 42.03 79.28 Day 4...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT