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: .XXXX).

Answer 1

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ve 1x 05-18 ENG 26-01-20207 EM423 X fx EL EH EJ E K E L EM EN EO EP _A VALUE WEIGHTED INDEX PO QO 80 500 900 600 407 408 409 410 411 412 413 414 415 416 417 418 419 420 421 422 Q1 500 900 145 600 TOTAL VALUE PO*Qo 40000 40500 75000 155500 P1 Q1 32500 45000 87000 164500 125 INDEX RETURN INDEX RETURN INDEX RETURN [RATE OF RETURN ] P1Q1/POQO - 1 164500/155500 - 1 0.0579 423 424 425 426 427 428 429 430 KE CAPM UTILITY, SHARPE, beta coNvexity DGM beta port future INDEX INTL CAP BUD SANDRINE LEASING PV, FV, ANNUITY DIR right clean YIEL ... ►