Three stocks have share prices of $39, $120, and $90 with total market values of $550 million, $500 million, and $300 million, respectively. If you were to construct a price-weighted index of the three stocks, what would be the index value?
price wighted index is calculated as average of prices of stocks with which we construct the index
price weighted index = (39+120+90)/3 = 83
Three stocks have share prices of $39, $120, and $90 with total market values of $550...
At the end of 1st January 2021, three stocks have share prices of $12, $75, and $30 with total market values of $400 million, $350 million and $150 million respectively. These stocks belong to companies A, B and C respectively. On the morning of 2nd January, company A declared a one-time special dividend of $4. What divisor will you use to calculate the value of your price weighted index on 2nd January, 2021? A) 3.000 B) 2.897 C) 2.987 D)...
2). Consider the following information for three stocks. Time-0 Time= 1 Price per share $90 $50 $100 Total shares Price er share $108 $90 $55 Total shares outstanding 100 100* 400* Stock outstandingp 100 200 200 "Number of shares outstanding for B and C changed due to reverse and regular stock splits, respectively a) Calculate the value-weighted, equal-weighted, and price weighted index weights of stocks A, B and C at time 0. b) Calculate the holding period return on stocks...
You are given the following information regarding prices for a sample of stocks.a. Construct a price-weighted index for these three stocks, and compute the percentage change in the index for the period from T to T+l.b. Construct a value-weighted index for these three stocks, and compute the percentage change in the index for the period from T to T+l.c. Construct an equal-weighted index by assuming $ 2000 is invested in each stock. Compute the percentage change in the index for the period from...
1. (Total 4 points, one point for cach) Consider the following three stocks in the table P and Q. denote stock prices and shares outstanding at time I respectively. Stock C splits two for one in the third period. P 0 1 200 75 61 89 20072 150 66 100 90 200 150 100 72 66 45 150 200 a) Calculate the rate of return for Stock A between time and time I assuming that there is no dividend paid...
A market value weighted index has three stocks in it, call them A, B, and C, priced at 38, 31, and 77 per share. Each firm has 222, 262 and 170 thousand shares outstanding, respectively. The value of the index at that time is 723. Over the course of the next quarter, the prices of the three stocks change to 65, 70, 78, respectively. What is the new value of the index? An investor buys a corporate bond fund that...
Calculate three stocks A, B, C with prices $10, $20, and $50 respectively. a) Calculate a price-weighted index. b) The next day, prices change to $12, $18, and $55. What is the new value of the index? c) What is the return on a portfolio that holds the same number of shares of each stock? d) Calculate the divisor if stock C splits two for one, using initial prices.
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...
Please include work and formulas 2). Consider the following information for three stocks Time -0 Time -1 Total shares outstanding 100 200 200 Number of shares outstanding for B and C changed due to reverse and regular stock splits, Price per share S90 S50 $100 Price per share S108 $90 $55 Total shares outstanding 100 100* 400* Stock respectively a) Calculate the value-weighted, equal-weighted, and price weighted index weights of stocks A, B and C at time 0 b) Calculate...
You are given the following information regarding prices for a sample of stocks. PRICE Stock Number of T T + Shares 1 3,700,000 $66 $84 10,000,000 28 42 29,000,000 19 30 a. 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. % b. Construct a value-weighted index for these three stocks, and...
You are given the following information regarding prices for a sample of stocks. PRICE Stock Number of Shares T T + 1 A 1,000,000 $68 $88 B 10,000,000 30 42 C 25,000,000 25 37 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,...