Question
In: Finance
True or False? -- The value of the market capitalization weighted stock index consisting of the...
True or False? -- The value of the market capitalization weighted stock index consisting of the stocks shown in the following table is less than 19.
| Stock A | Stock B | Stock C | Stock D | |
| Stock Price | $11.11 | $22.22 | $18.18 | $29.29 |
| Market Capitalization (in Billions) | $7 | $6.5 | $3.2 | $8 |
Group of answer choices
Solutions
jeff jeffy answered 1 year agoRelated Solutions
True or False? -- The value of the market capitalization weighted stock index consisting of the...
True or False? -- The value of the market
capitalization weighted stock index consisting of the stocks shown
in the following table is less than 19.
Stock A
Stock B
Stock C
Stock D
Stock Price
$11.11
$22.22
$18.18
$29.29
Market Capitalization (in Billions)
$7
$6.5
$3.2
$8
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 point) What is the price return of the
index?
(1 point) What is the total return of the
index?
1. We have a market capitalization weighted index of 20 stocks. The total market capitalization of...
1. We have a market capitalization weighted index of 20 stocks.
The total market capitalization of the index is $1 billion. Today,
18 of the stocks finished unchanged – that is, their return was
0.0%. The 19th stock was up 1% and has a market capitalization of
$100 million. The 20th stock was down 1% and has a market
capitalization of $10 million. What was the change in the
index?
What is the return of a market capitalization weighted and evenly weighted index of two stocks...
What is the return of a market capitalization weighted and
evenly weighted index of two stocks with market prices of $30 and
$50 that increase to $40 and $60 where the market capitalizations
of each is $4 billion and $6 billion respectively at the beginning
of the period?
Please show work.
The TriValue Index is a market value weighted index comprising of three stocks. The number of...
The TriValue Index is a market value weighted index comprising
of three stocks. The number of shares outstanding and the closing
stock prices for each of the stocks are given as follows:
Number of shares outstanding Closing price yesterday Closing
price today
Stock A 350,000 $23 $23
Stock B 405,000 $43 $41
Stock C 553,000 $56 $58
The number of shares outstanding for the stocks does not change
during the period. If the index was closed at 970 yesterday, what...
and compare different weighting methods used in index construction (price weighted, market value weighted, equally weighted)...
and compare different weighting methods used in index
construction (price weighted, market value weighted, equally
weighted)
why equally weighted index require frequent rebalancing?
The Russell 1000 is a stock market index consisting of the largest U.S. companies. The Dow...
The Russell 1000 is a stock market index consisting of the
largest U.S. companies. The Dow Jones industrial Average is based
on 30 large companies. The data giving the annual percentage
returns for each of these stock indexes for 25 years are contained
in the Excel Online file below. Construct a spreadsheet to answer
the following questions.
Year
DJIA % Return
Russell 1000 % Return
1988
8.82
12.33
1989
26.59
26.44
1990
-3.68
-4.57
1991
16.04
28.88
1992
5.38
1.66...
True or false? a) “Under perfect competition the value of the Lerner Index is equal to...
True or false?
a) “Under perfect
competition the value of the Lerner Index is equal to 0.”
_____________
b) “In a
monopolistic market the deadweight loss does not always occur”.
_____________
c) “The existence
of scale economies is the main reason for the existence of
multiproduct firms”. _____________
d) “The short run
industry supply curve is obtained by adding up the average cost
curves of all the firms in the industry.” ______________
A positive profitability index indicates a positive net present value. True or False
A positive profitability index indicates a positive net present
value. True or False
3. Explain the difference between a price-weighted index and market-weighted index. Is the Dow-Jones considered a...
3. Explain the difference between a price-weighted index
and market-weighted index. Is the Dow-Jones considered a
price-weighted or market-weighted index?
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