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QUESTION 1 Stock Day 1 Price $75 $128 Shares 1,500 2,000 A company creates a price-weighted...
QUESTION 3 A company wants to create a market value-weighted index from a group of stocks...
QUESTION 3 A company wants to create a market value-weighted index from a group of stocks with a total market capitalization of $600,000. If the desired initial index value is 1,500, then what is the divisor? 400 QUESTION 4 A constituent stock of a market value-weighted index splits 2-for-1. Which one of the following best describes how the stock index changes? O The total market capitalization increases, divisor decreases, but the index value does not change following the stock split....
As of January 1 As of December 31 Share price Number of Shares Outstanding (thousands) Share...
As of January 1 As of December 31 Share price Number of Shares Outstanding (thousands) Share price Number of Shares Outstanding (thousands) Stock A $20 1,500 $24 1,600 Stock B $40 10,000 $43 9,000 Stock C $34 3,000 $32 3,000 Refer to the information in the above table. The 1-year return on a market capitalization-weighted index of these three stocks is closest to: Select one: A. -1.99%. B. 5.32%. C. -6.21%.
A value-weighted index consisting of stocks A, B, and C was created yesterday. When the index...
A value-weighted index consisting of stocks A, B, and C was created yesterday. When the index was created, stocks A,B, and C traded for $80, $45, and $125, respectively. The number of shares outstanding for A,B, and C, was 500, 900, and 600 when the index was formed. Today, stocks A, B, and C trade for $65, $50, and $145, respectively. Find the return on the index from yesterday to today Round intermediate steps and your final answer to four...
QUESTION 4 The following three defense stocks are to be combined into a price-weighted stock index in January 2016 (per...
QUESTION 4 The following three defense stocks are to be combined into a price-weighted stock index in January 2016 (perhaps a portfolio manager believes these stocks are an appropriate benchmark for his or her performance): Suppose that Douglas McDonnell shareholders approve a 3-for-1 stock split on January 1, 2017 and that the company enacts the stock split on January 2, 2017 Price Shares (millions) 1/1/16 1/1/17 1/1/18 Douglas McDonnell 195 $ 97 $100 $35.39 Dynamics General 455 22 36 International...
QUESTION:C PLEASE You are creating an index for the four following stocks Price, Price, Stockt-0 112...
QUESTION:C
PLEASE
You are creating an index for the four following stocks Price, Price, Stockt-0 112 45 21 26 ABC DEF GHI JKL 102 50 26 30 Shares (million) 100 500 1,200 450 A. What is the one day return for the index if it is price-weighted? B. What is the one day return for the index if it is market-weighted? C. Suppose that at the conclusion on t-1 trading day, stock ABC does a 2:1 stock split, what is...
The following three defense stocks are to be combined into a price-weighted stock index in January...
The following three defense stocks are to be combined into a price-weighted stock index in January 2016 (perhaps a portfolio manager believes these stocks are an appropriate benchmark for his or her performance): Suppose that Douglas McDonnell shareholders approve a 3-for-1 stock split on January 1, 2017 and that the company enacts the stock split on January 2, 2017. Price Shares (millions) 1/1/16 1/1/17 1/1/18 Douglas McDonnell 430 $ 108 $ 114 $ 41.08 Dynamics General 535 38 34 48...
3. Following is the stock price for three stocks for time 0 and time 1. Time...
3. Following is the stock price for three stocks for time 0 and time 1. Time 0 Time 1 #Shares 50 100 80 Stock A splits 2-for-1 between time 0 and 1 Stock Stock Price Price # Shares $55 $100 $60 A $30 $115 $40 A 100 B 100 80 C C What is the value of a price weighted index including all three stocks at time 0? (3 points) a) b) What is the new divisor for a price-weighted...
7b. Consider three stocks A, B, and C, with closing price at time t being P, and the number of shares time t as Q S...
7b. Consider three stocks A, B, and C, with closing price at time t being P, and the number of shares time t as Q Stock C splits three-for-one at the beginning of period -2 (before the market opens). 1000 the market opens of shares outstanding at 43 1000 35 56 102 1000 30 5000 67 5000 5000 B 62 C 98 i. What is the return on a price-weighted index of the three stocks for the period r-0 to...
QUESTION 1 A market value weighted index has three stocks in it, call them A, B,...
QUESTION 1 A market value weighted index has three stocks in it, call them A, B, and C, priced at 32, 58, and 83 per share. Each firm has 455, 143 and 155 thousand shares outstanding, res pective ly. The value of the index at that time is 742. Over the course of the next quarter, the prices of the three stocks change to 40, 82, 55, respectively. What is the new value of the index? Enter answer accurate to...
A market value weighted index has three stocks in it, call them A, B, and C,...
A market value weighted index has three stocks in it, call them A, B, and C, priced at 54, 60, and 27 per share. Each firm has 339, 376 and 421 thousand shares outstanding, respectively. The value of the index at close of trading day is 834. At this time, the index decides to remove stock C from the index, and in its place to insert stock D. Stock D has a closing price of $85 per share, and 196...
QUESTION 3 A company wants to create a market value-weighted index from a group of stocks with a total market capitalization of $600,000. If the desired initial index value is 1,500, then what is the divisor? 400 QUESTION 4 A constituent stock of a market value-weighted index splits 2-for-1. Which one of the following best describes how the stock index changes? O The total market capitalization increases, divisor decreases, but the index value does not change following the stock split....
A value-weighted index consisting of stocks A, B, and C was created yesterday. When the index was created, stocks A,B, and C traded for $80, $45, and $125, respectively. The number of shares outstanding for A,B, and C, was 500, 900, and 600 when the index was formed. Today, stocks A, B, and C trade for $65, $50, and $145, respectively. Find the return on the index from yesterday to today Round intermediate steps and your final answer to four...
QUESTION 4 The following three defense stocks are to be combined into a price-weighted stock index in January 2016 (perhaps a portfolio manager believes these stocks are an appropriate benchmark for his or her performance): Suppose that Douglas McDonnell shareholders approve a 3-for-1 stock split on January 1, 2017 and that the company enacts the stock split on January 2, 2017 Price Shares (millions) 1/1/16 1/1/17 1/1/18 Douglas McDonnell 195 $ 97 $100 $35.39 Dynamics General 455 22 36 International...
QUESTION:C
PLEASE
You are creating an index for the four following stocks Price, Price, Stockt-0 112 45 21 26 ABC DEF GHI JKL 102 50 26 30 Shares (million) 100 500 1,200 450 A. What is the one day return for the index if it is price-weighted? B. What is the one day return for the index if it is market-weighted? C. Suppose that at the conclusion on t-1 trading day, stock ABC does a 2:1 stock split, what is...
3. Following is the stock price for three stocks for time 0 and time 1. Time 0 Time 1 #Shares 50 100 80 Stock A splits 2-for-1 between time 0 and 1 Stock Stock Price Price # Shares $55 $100 $60 A $30 $115 $40 A 100 B 100 80 C C What is the value of a price weighted index including all three stocks at time 0? (3 points) a) b) What is the new divisor for a price-weighted...
7b. Consider three stocks A, B, and C, with closing price at time t being P, and the number of shares time t as Q Stock C splits three-for-one at the beginning of period -2 (before the market opens). 1000 the market opens of shares outstanding at 43 1000 35 56 102 1000 30 5000 67 5000 5000 B 62 C 98 i. What is the return on a price-weighted index of the three stocks for the period r-0 to...
QUESTION 1 A market value weighted index has three stocks in it, call them A, B, and C, priced at 32, 58, and 83 per share. Each firm has 455, 143 and 155 thousand shares outstanding, res pective ly. The value of the index at that time is 742. Over the course of the next quarter, the prices of the three stocks change to 40, 82, 55, respectively. What is the new value of the index? Enter answer accurate to...
A market value weighted index has three stocks in it, call them A, B, and C, priced at 54, 60, and 27 per share. Each firm has 339, 376 and 421 thousand shares outstanding, respectively. The value of the index at close of trading day is 834. At this time, the index decides to remove stock C from the index, and in its place to insert stock D. Stock D has a closing price of $85 per share, and 196...
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