Question

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 decimals and enter your answer in decimal format (ex: 3000). 6. QUESTION 2 An equally weighted index's return can be calculated using an arithmetic average of the individual asset returns within the index O True False QUESTION 3 On 12/30/2017, stocks D, E, and F were used to create a price weighted index. At the time the index was formed, stocks D, E and F sold for $25, $75, and $65, respectively. If stock E undergoes a 6:5 split the day after the index was formed, what is the new divisor for the price-weighted index? Round intermediate steps and your final answer to four decimals QUESTION 4 Find the percentage change in a value weighted index composed of stocks P and Q from 2014-2015. Price 2014Price 2015 Shares Outstanding 9000 12 16 Round intermediate steps and your final answer to four decimals. Enter your answer in decimal format (EX: 3X00

Answer 1

1. Return on Index yesterday from Today = $ 2166.67

2. True.

3. Price Weighted Index new divisor = 2.7727

4. Percentage change in value of weighted Index = 4.30% (or) 0.0430