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1). Consider the following information for three stocks Price per share 12/31/2003 $65.75 Price per shareDividends per Total shares outstanding 150 60 125 Stock 3/31/2004 $48.25 $28.125 $150.25 share $0.00 $1.25 $2.00 $24.125 $112.00 a) Calculate the value-weighted, equal-weighted, and price weighted index weights of stocks A, B and C at 12/31/2003 b) Calculate the holding period return on stocks A, B, and C in the first quarter of 2004 c) Calculate the value-weighted, equal-weighted, and price-weighted index returns on a portfolio of stocks A, B, and C in the first quarter of 2004?Please show all work and show formulas!

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0 1Value weighted index- the weight is equal to market capitalisation 2Equal weight- the equal weight is given ЗЦ Price weighted-price is taken as weight Price per share 5 a Stock 12/31/20 3/31/2004 Dividend per share Total o/s Value Equal V Price 6 A 48.25 24.13 28.13 112.00 50.25 65.75 0.00 150.00 7237.5 0.333 48.25 1.25 60.00 1687.5 0.333 28.13 2.00 125.00 18781 0.333 150.25 10 b Holding period return Price per share 12 Stock 12/31/20 3/31/2004 Dividend per share Total o Return HPR 13 A 14 B 15 C 16 17 C Price per share 65.75 48.25 28.13 112.00 50.25 0.00 150.00-17.50#### 1.25 60.00 5.25#### 2.00 125.00 40.25#### 24.13 vaiue Equai weight Weigh Price Price 18 Stock 12/31/20 3/31/2004 Dividend per share Total o/ s 19 A 20 B 21 C Value weights Equal Weight 48.25 24.13 28.13 112.00 50.25 65.75 0.00 150.00 7237.5 0.33348.25 475865.6 349209.375 21.91667 16.08333 3172.438 2328.063 1.25 60.00 1687.5 0.333 28.13 40710.94 47460.9375 8.041667 9.375 678.5156 791.0156 2.00 125.00 18781 0.333 150.25 2103500 2821882.813 37.33333 50.08333 16828 22575.06 2620077 3218553.125 67.29167 75.54167 20678.95 25694.14 23 24 25 1.23 1.12 1.24Value weight 2 Equal weight 3 Price weighte Price per share 12/31/2003 65.75 24.125 112 5 a) Stock 3/31/2004 Dividend pe Total ols shaes Value weights Equal Weight Price 48.25 28.125 125 150.25 2 150 60 125 -D6 F6 #1/3 #1/3 #1/3 8 C 10 b) Holding period Price per share 12/31/2003 65.75 24.125 112 HPR 12 Stock 13 14 B 15 C 16 17 c) 3/31/2004 Dividend pe Total o/s shares Return 28.125 125 150.25 2 150 60 125 -D13-C13+E13 «D14-C14-E14 -D15-C15+E15 G13/C13 G14/C14 G15/C15 Price per share 18 Stock 19 A 20 B 21 C 12/31/2003 65.75 24.125 112 3/31/2004 Dividend pe Total ols shaes Value weights Equal Weight Price 48.25 28.125 125 150.25 2 Value weights -C19 G19 150 60 125 #1/3 #1/3 #1/3 Equal Weight -C19 H19 -C20 H20 -C21 H21 =SUM(し19:L21) -D19 F19 -D19 -D19 G19 -D19 H19 -l19 C19 -021 F21 -C21 G21 :SUM(J 19:J21) -K22J22 -D21 G21 =SUM(K19:K21) -D21 H21 =SUM(M19:1421 ) -121 C21 =SUM(N19:N21) 23 24

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