Question

For the following two questions consider an index of two stocks, which are weighted by market capitalization. Here is a summary of their prices at the beginning and the end of two periods. Shares Outstanding Beginning Price Ending Price Kirk, Inc. Picard Co. 15,000 25,000 $50.00 $75.00 $60.00 $85.00 13. If you invested a dollar in this index at the beginning of the time frame, how much would you have at the end? A. Less than $1.00. B. $1.00 to $1.06. C. $1.06 to $1.12. D. $1.12 to $1.18. E. More than $1.18 14. If the beginning value of the index were 225, what would be the ending value of the index? A. Less than 225. B. 225 to 250. C. 250 to 275. D. 275 to 300. E. More than 300.

Answer 1

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ke - Microsoft Excel (Product Activation Failed) Add-Ins Formulas Data Review View - 2x r General File Home Insert Page Layout % Cut Calibri Ea Copy Paste Format Painter BI U D Clipboard Font B1044 11 - AA = = = A *Wrap Text Merge Merge & Center - Center m Find & SF $ % % 4:0 .00 88 Insert Delete Format Conditional Format Formatting as Table Styles Cell Styles Σ AutoSum : A Fill 2 Sort & Clear Filter Editing Select Alignment Number Cells А E F G H I MARKET VALUE WEIGHTED INDEX STOCK KIRK PICARD PO 50 75 QO 15000 25000 P1 60 85 Q1 15000 25000 PO*QO 750000 1875000 P1*Q1 900000 2125000 2625000 3025000 RATE OF RETURN = (302500-262500/262500 15.24% 13 IF INVESTMENT = $1 THE VALUE AT THE END = 1*(1+0.1524) = 1.1524 1025 1026 1027 1028 1029 1030 1031 1032 1033 1034 1035 1036 1037 1038 1039 1040 1041 1042 1043 1044 1045 HO N Rea D: $1.12 TO $1.18 225 14 BEGINNING VALUE OF INDEX = ENDING VALUE OF INDEX = 225*(1+0.1524) = 259.29 C:250 TO 275 convexity DGM beta port future INDEX INTL CAP BUD LEASING PV, FV, ANNUITY DIR right clean YIELD bond portfolio KE CAPM UTILITY, SHARPE, beta ferences cap stru WACCRESI el BOJ 120% ...Bag Ka 40 ENG 31-10-2019