Question

P0 Q0 P1 Q1 P2 Q2 A $          18.00 150.00 $         16.00 150.00 $   19.00 150.00...

P0

Q0

P1

Q1

P2

Q2

A

$          18.00

150.00

$         16.00

150.00

$   19.00

150.00

B

$          30.00

400.00

$         42.00

400.00

$   44.00

400.00

C

$          44.00

200.00

$         60.00

200.00

$   24.00

600.00

1.1 Calculate the price-weighted index of the three stocks for each period . What is the divisor for each period ? Does it change in the last period ? Why or why not ?

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Home nert Page Layout Formulas Data Review View dd-Ins s Cut ta copy. Σ AutoSum Wrap Text в 1 프 . Ej-., Δ. : rーー 逻锂函Merge & Center. $, % , 弼,8 Conditional Format eCell Insert Delete Format Paste Sort &Find & 2 ClearFe Select Editing Format Painter Formatting, as Table w styles. ▼ ㆆ ▼ Clipboard Font Alignment Number Cells E447 441 442 443 PRICE WEIGHTED INDEX AT t-0, THE VALUE OF INDEX (18+30+44)/3- AT t-1, THE VALUE OF INDEX (16+42+60)/3- 30.67 39.33 445 446 447 448 449 450 451 452 453 454 455 456 457 458 459 4 H KE CAPM UTILITY, SH THERE WAS A STOCK SPLIT IN YEAR 2 STOCK SPLIT DOES NOT AFFECT THE INDEX VALUE SO WE HAVE TO FIND DIVISOR D WHICH WILL KEEP INDEX AT 39.33 (1642 (60/3))/D-39.33 (16+4220 )/D 39.33 78/D 39.33 D-1.983:2 ROUNDED TO 4 DECIMAL AT t-2, THE VALUE OF INDEX (19+44+24)/1.9832 43.87 DIVISOR FOR PERIOD t-0 AND t-1 ARE 3 DIVISOR FOR PERIOD t-2 IS 1.9832 IT CHANGES BECAUSE OF STOCK SPLIT OF STOCK C beta bond c t future INDEXINTL CAP BUD ING PV, FV, ANNUITYDIR cleanYIELD bond stru WACC RESI ex di 福 130% 29-01-2019

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