Assume the following information concerning two stocks that make up an index. What is the price-weighted...
Assume the following information concerning two stocks that make up an index. What is the price-weighted return for the index? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
| Price per Share | |||||||||||
| Shares Outstanding | Beginning of Year | End of Year | |||||||||
| Kirk, Inc. | 33,000 | $ | 45 | $ | 50 | ||||||
| Picard Co. | 31,500 | 75 | 81 | ||||||||
| Return % ? | |||||||||||
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Assume the following information concerning two stocks that make
up an index. What is the price-weighted...
You are given the following information concerning two stocks that make up an index. ...
You are given the following information concerning two stocks that make up an index. Price per Share Shares Outstanding Beginning of Year End of Year Kirk, Inc. 36,000 $ 74 $ 82 Picard Co. 33,500 115 123 a. Assume that you want to build a price-weighted index including the two stocks. Please calculate the beginning index and the end index. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Beginning Index: End Index: b....
QUESTION 1 You are given the following information concerning two stocks that make up an index....
QUESTION 1 You are given the following information concerning two stocks that make up an index. Price per Share Shares Beginning of Outstanding Year End of Year Kirk, Inc. 34,000 $53.1 $60.4 Picard Co. 32,000 78.5 84.7 a. Assume that you want to build a price-weighted index including the two stocks. Please calculate the beginning index and the end index. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Beginning Index: End Index:...
For the following two questions consider an index of two stocks, which are weighted by market...
For the following two questions consider an index of two stocks, which are weighted by market capitalization. Here is a summary of their prices at the beginning and the end of two periods. Shares Outstanding Beginning Price Ending Price Kirk, Inc. Picard Co. 15,000 25,000 $50.00 $75.00 $60.00 $85.00 13. If you invested a dollar in this index at the beginning of the time frame, how much would you have at the end? A. Less than $1.00. B. $1.00 to...
In addition to price-weighted and value-weighted indexes, an equally weighted index is one in which the...
In addition to price-weighted and value-weighted indexes, an equally weighted index is one in which the index value is computed from the average rate of return of the stocks comprising the index. Equally weighted indexes are frequently used by financial researchers to measure portfolio performance. The following three defense stocks are to be combined into a stock index in January 2016 (perhaps a portfolio manager believes these stocks are an appropriate benchmark for his or her performance): Price Shares (millions)...
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...
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...
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...
Problem 5-14 Price-Weighted Indexes (L04, CFA2) The following three defense stocks are to be combined into...
Problem 5-14 Price-Weighted Indexes (L04, CFA2) The following three defense stocks are to be combined into a stock index in January 2016 (perhaps a portfolio manager believes these stocks are an appropriate benchmark for his or her performance): Price Shares (millions) 530 230 330 1/1/16 $ 62 1/1/18 $ 81 Douglas McDonnell Dynamics General International Rockwell - 34 1/1/17 $ 66 28 52 42 63 68 ces a. Calculate the initial value of the index if a price-weighting scheme is...
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...
the three stocks in the following table. Pe represents price at time t, and Q represents...
the three stocks in the following table. Pe represents price at time t, and Q represents shares outstanding at time t Stock C splits two for one in the last period. Po A 75 35080 350 80350 B 55 800 50 800 50 800 С 60 900 70 900 351,800 o. Calculate the rate of return on a price weighted index of the three stocks for the first period (t-0 to t-1) (Do not round intermediate calculations. Round your answer...
QUESTION 1 You are given the following information concerning two stocks that make up an index. Price per Share Shares Beginning of Outstanding Year End of Year Kirk, Inc. 34,000 $53.1 $60.4 Picard Co. 32,000 78.5 84.7 a. Assume that you want to build a price-weighted index including the two stocks. Please calculate the beginning index and the end index. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Beginning Index: End Index:...
For the following two questions consider an index of two stocks, which are weighted by market capitalization. Here is a summary of their prices at the beginning and the end of two periods. Shares Outstanding Beginning Price Ending Price Kirk, Inc. Picard Co. 15,000 25,000 $50.00 $75.00 $60.00 $85.00 13. If you invested a dollar in this index at the beginning of the time frame, how much would you have at the end? A. Less than $1.00. B. $1.00 to...
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...
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...
Problem 5-14 Price-Weighted Indexes (L04, CFA2) The following three defense stocks are to be combined into a stock index in January 2016 (perhaps a portfolio manager believes these stocks are an appropriate benchmark for his or her performance): Price Shares (millions) 530 230 330 1/1/16 $ 62 1/1/18 $ 81 Douglas McDonnell Dynamics General International Rockwell - 34 1/1/17 $ 66 28 52 42 63 68 ces a. Calculate the initial value of the index if a price-weighting scheme is...
the three stocks in the following table. Pe represents price at time t, and Q represents shares outstanding at time t Stock C splits two for one in the last period. Po A 75 35080 350 80350 B 55 800 50 800 50 800 С 60 900 70 900 351,800 o. Calculate the rate of return on a price weighted index of the three stocks for the first period (t-0 to t-1) (Do not round intermediate calculations. Round your answer...
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