(6) A benchmark index has three stocks priced at $23, $43, and $56. The number of outstandingshares for each is 350,000 shares, 405,000 shares, and 553,000 shares, respectively. If themarket value weighted index was 970 yesterday and the prices changed to $23, $41, and $58what is the new index value?A) 960B) 970C) 975D) 985

Please see the table on the white board.

Answered: (6) A benchmark index has three stocks…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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es The following three defense stocks are to be combined into a stock index in January 2022 (perhaps a portfolio manager believes these stocks are an appropriate benchmark for his or her performance): Douglas McDonnell Dynamics General International Rockwell Index value Shares (millions) 420 450 250 2022 return 2023 return a. Calculate the initial value of the index if a price-weighting scheme is used. 1/1/22 $ 63 53 82 Price 1/1/23 $ 67 47 71 % % b. What is the rate of return on this index for the year ending December 31, 2022? For the year ending December 31, 2023? Note: A negative value should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. 1/1/24 $ 84 61 87
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Consider 2 stocks in the following table. We create a stock index of companies that make stuff for Spring Break. stocks PO Q0 P1 Q1 ABC, Inc. $850P0 150Q0 $ 830P1 150Q1 XYZ, Inc. $510P0 400Q0 $550P1 400Q1 What is the initial portfolio weight for stock ABC in a Price - weighted index of these two stocks
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(Related to Checkpoint 10.3) (Preferred stock valuation) Calculate the value of a preferred stock that pays a dividend of $5.00 per share when the market's required yield on similar shares is 9 percent. The value of the preferred stock is S per share. (Round to the nearest cent.)
12)Under dollar-cost averaging (cedi cost averaging), an investor will purchase GHS6,000 worth of stock each year for three years. The stock price is GHS40 in year 1, GHS30 in year 2, and GHS48 in year 3. i)Compute the average price per share. ii) Compute the average cost per share. Explain why the average cost is less than the average price
Three stocks have share prices of $12, $75, and $30 with total market values of $400 million, $350 million and $150 million respectively. If you were to construct a price- weighted index of the three stocks what would be the index value?
The following three defense stocks are to be combined into a stock index in January 2022 (perhaps a portfolio manager believes these stocks are an appropriate benchmark for his or her performance): Douglas McDonnell Dynamics General International Rockwell Index value Shares (millions) 430 535 210 2022 return 2023 return a. Calculate the initial value of the index if a price-weighting scheme is used. 1/1/22 $ 108 38 67 Price 1/1/23 $ 114 34 56 % % b. What is the rate of return on this index for the year ending December 31, 2022? For the year ending December 31, 2023? Note: A negative value should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. 1/1/24 $ 131 48 70
H2. A benchmark index has three stocks priced at $60, $65, and $70. The number of outstanding shares for each is 444,000 shares, 555,000 shares, and 777,000 shares, respectively. Suppose the price of these three stocks changed to $40, $70, and $90, respectively and number of outstanding shares did not change, what is the equal-weighted index return?
Given the following stock quotation, find the highest price during the last year. (Refer to Exhibit 20–3.) Pfizer PFE 15.52 16.22 15.67 15.83 0.50 3.26 38,228,171 19.95 13.72 0.73 4.61 14.8 −12.00 A. $15.83 B. $16.22 C. $19.95 D. $38.23
The Nasdaq 100 Trust (QQQQ), known popularly as Cubes or Qubes, tracks the Nasdaq 100 Index. The index was created in 1985 to represent the 100 largest (in terms of market cap) nonfinancial stocks in the Nasdaq Composite Index. One year ago it sold for $48.15 per share; today it sold for $45.65 per share. During the year, it paid dividends totaling $0.15.Jazy sold 1000 shares short one year ago and closed her position today. Her broker required a 60% margin deposit.What percentage return did Jazy earn on her initial investment? Group of answer choices -11.5% -5.3% -4.9% 8.1% 13.5%
(Related to Checkpoint 10.3) (Preferred stock valuation) Calculate the value of a preferred stock that pays a dividend of $6.00 per share when the market's required yield on similar shares is 13 percent. ..... The value of the preferred stock is $ per share. (Round to the nearest cent.)

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