4. If the index containing the stocks below were price-weighted and stock Z splits 5-for-2 during...
The Hydro Index is a price weighted stock index based on the 5 largest boat manufacturers in the nation. The stock prices for the five stocks are $10, $20, $80, $50 and $40. Assume that the divisor is 5. What is the value of a price weighted index? Please Show Workings 60 40 50 45
31-Dec-03 Price Stock 150.00 $50.00 Stocks W and X had 2 for 1 splits after the close on Dec 31, 2003. Caloulate the geometric mean return from 2003-2004 for an unwelighted index. Hint: You can account for W and X's stock spit in the HPR equation.) O-1568 O.1925 2791 -0625 6.25 points QUESTION 15 Use the following information to answer the next two questions. Suppose that you create a price weighted index consisting of the following three stocks: Price 1/2/2019...
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...
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...
Suppose a stock index contains the stocks of four firms: W, X, Y, Z. The stock prices for the four companies are $50, $25, $60, and $5, respectively, and the firms have 100 million, 400 million, 200 million, and 50 million shares outstanding, respectively. a. Calculate the initial value for a price weighted index. b. Calculate the initial value for a value weighted index.
9. Consider the three stocks in the following table. P, represents price at time t, and Q, represents shares outstanding at time t. Stock C splits two-for-one in the last period. (LO 2-2) Pt 95 45 110 100 200 200 100 200 400 95 90 50 100 100 200 200 45 a. Calculate the rate of return on a price-weighted index of the three stocks for the first period (i 0 to t 1). b. What must happen to the...
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 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....
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...
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...