HomeworkLib
Question

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 decimals and enter your answer in decimal format (ex: .XXXX).

business   finance   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASEve 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

0 0
Add a comment
Know the answer?
Add Answer to:
A value-weighted index consisting of stocks A, B, and C was created yesterday. When the index...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • 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...

  • 55) 55) A benchmark index has three stocks priced at $23, S43 and $56 yesterday. The...

    55) 55) A benchmark index has three stocks priced at $23, S43 and $56 yesterday. The number of outstanding shares for each is 350,000 shares, 405,000 shares and 553,000 shares, respectively. If the market value weighted index was 970 yesterday and the prices changed to $23, S41 and $58 today, what is the new index value? A) 985 B) 970 0975 D) 960

  • A market value weighted index has three stocks in it, call them A, B, and C,...

    A market value weighted index has three stocks in it, call them A, B, and C, priced at 38, 31, and 77 per share. Each firm has 222, 262 and 170 thousand shares outstanding, respectively. The value of the index at that time is 723. Over the course of the next quarter, the prices of the three stocks change to 65, 70, 78, respectively. What is the new value of the index? An investor buys a corporate bond fund that...

  • A market value weighted index has three stocks in it, call them A, B, and C,...

    A market value weighted index has three stocks in it, call them A, B, and C, priced at 54, 60, and 27 per share. Each firm has 339, 376 and 421 thousand shares outstanding, respectively. The value of the index at close of trading day is 834. At this time, the index decides to remove stock C from the index, and in its place to insert stock D. Stock D has a closing price of $85 per share, and 196...

  • A market value-weighted index has three stocks in it, priced at 58, 82, and 86 per...

    A market value-weighted index has three stocks in it, priced at 58, 82, and 86 per share, and each firm has 187, 441 and 103 thousand shares outstanding, respectively. The value of the index today is 915. At this time, the third stock undergoes a 3 for 1 stock split. What is the new value of the index?

  • QUESTION 1 A market value weighted index has three stocks in it, call them A, B,...

    QUESTION 1 A market value weighted index has three stocks in it, call them A, B, and C, priced at 32, 58, and 83 per share. Each firm has 455, 143 and 155 thousand shares outstanding, res pective ly. The value of the index at that time is 742. Over the course of the next quarter, the prices of the three stocks change to 40, 82, 55, respectively. What is the new value of the index? Enter answer accurate to...

  • A price-weighted index consists of stocks A, B, and C which are priced at $32, $64,...

    A price-weighted index consists of stocks A, B, and C which are priced at $32, $64, and $41 a share, respectively. The current index divisor is 2.45. If stock B undergoes a 2-for-1 stock split, the new index divisor will be:

  • A price-weighted index consists of stocks A, B, and C which are priced at $55, $38,...

    A price-weighted index consists of stocks A, B, and C which are priced at $55, $38, and $17 a share, respectively. The current index divisor is 2.5. What will the new index divisor be if stock A undergoes a 5-for-1 stock split?

  • 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)...

  • Consider the following three stocks: Price $ 40 Stock Stock A Stock B Stock C Number...

    Consider the following three stocks: Price $ 40 Stock Stock A Stock B Stock C Number of shares outstanding 200 500 $ 70 $ 10 600 The price-weighted index constructed with the three stocks is O A 30. O B.40 O 0.50 OD.60

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT