a. Calculate the initial value of the index if a price-weighting scheme is used. Indes value b. What is the rate of return on this Index for the year ending December 31, 20197 For the year ending December 31, 20207 (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.)

a. Calculate the initial value of the index if a price-weighting scheme is used. Indes value b. What is the rate of return on this Index for the year ending December 31, 20197 For the year ending December 31, 20207 (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.)

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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Quarterly Rates of return are calculated for all properties included in the index and are based on Which two distinct components of return?
Calculate the standard deviation of this scenario Outcome 1: Recession. Probability = 40% . Return = 7.38%. Outcome 1: Recovery. Probability = 60%. Return = 17.27 %. Answer in % terms w/o % sign and to 4 decimal places (1.2345)
1. If you had bought the January put with exercise price $105, will you exercise your put? 2. What is the profit (loss) on your position?
PLEASE ANSWER CORRECTLY ASAP
Question A .On 4th September 2019, the Dow Jones Industrial Average is closed at 26355.47, the value of DJIA divisor on that date was 0.12282. Calculate the average market price of DJIA component stocks and the cost of a round lot of all DJIA components. Full explain this question and text typing work only We should answer our question within 2 hours takes more time then we will reduce Rating Dont ignore this line
Consider the following information: Probability of Rate of Return If State of Economy State of Economy State Occurs Recession Normal Boom .20 .45 .35 Expected return Calculate the expected return. Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. -.14 .10 .36 %
Consider the following table of annual rates of return, in percentage, for four common risky assets over the time period 2010 to 2019 • Berkshire Hathaway (ticker: BRK/A) • S&P 500 Index (ticker: SPX) • NASDAQ 100 Index (ticker: NDX) • Russell 2000 Index (ticker: RUT) YEAR BRK/A SPX NDX RUT 2010 21.4 15.1 19.22 26.85 2011 -4.7 2.1 2.7 -4.18 2012 16.8 16 16.82 16.35 2013 32.7 32.4 34.99 38.82 2014 27 13.7 17.94 4.89 2015 -12.5 1.4 8.43 -4.41 2016 23.4 12 5.89 21.31 2017 21.9 21.8 31.52 14.65 2018 2.8 -4.4 -1.04 -11.01 2019 11 31.5 37.96 25.52 Assuming there is no risk-free asset available, suppose you desire to invest in a portfolio of these 4 risky assets such that you minimize the portfolio variance, subject to the constraint that the portfolio weights sum to 1. Note that short positions (negative weights) are permissible. Using mean-variance portfolio optimization, determine the 4 minimum variance portfolio weightings and the minimum portfolio variance. Please enter your solutions in…
The amount of goods and services each dollar buys at a given point in time is: Group of answer choices inflation None of the options consumer price index (CPI) purchasing power
Given the following yearly percentage price changes for 3 market indexes. Compute the Covariance of PSEI & SSE; SSE & RUSSELL 100 Year PSEI SSE RUSSELL 100 1 0.03 0.02 0.04 2 0.07 0.06 0.1 3 -0.02 -0.01 -0.04 4 0.01 0.03 0.03 5 0.05 0.04 0.11 6 0.07 0.06 0.1 7 -0.02 -0.01 -0.04 8 0.01 0.03 0.03 9 0.05 0.04 0.11 10 -0.06 -0.04 -0.08
Using the forward price approach to finish the following blanks. The expected closing basis was -$.15. And the actual closing basis was -$0.25. Date 1-Oct Cash Cash Price $6.30 Futures May Futures $6.75 Cost of holding from Oct 1 to May 1 (including interest) = $0.21 What is the forward price? What is the break-even price? What is the expected profit margin? = 1-Oct 1-May Sell Cash @ $6.40 Sell May Futures @ $6.75 Buy May Futures @ ? What is the futures price on May 1? What is the gain or loss on futures market result? = What is the gain or loss on cash market result? = What is the realized price (or net selling price)? = What is the overall profit? = What is the break-even price?
Use the following output from a market model regression of the weekly percentage returns on the AIG commodities index on a market index to answer questions a. - f. a. What is the formula for the Commodities Index' characteristic line? b. You forecast a market return of 1.0% for next week. What is next week's expected return for the commodities index? c. What is the correlation between the return on the commodities index and the return on the market Index? d. How much of the variation in the commodities index's returns are explained by the model? e. Based on these regression results, the commodities index would be considered what kind of an investment? f. Does this regression have much explanatory power? Why or why not?

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