Consider the following stock price and shares outstanding information.PWIyear 1:PWIYear 2:a. Compute the beginning and ending values for a price-weighted index and a market-value-weighted index. Assume a base value of 100 and Year 1 as the base period. Do not round intermediate calculations. Roundanswers to two decimal places.VWIyear 1:VWIYear 2:DECEMBER 31, Year 2SharesDECEMBER 31, Year 1SharesOutstanding Price Outstanding107,000,000 $29107,000,0002,500,000 4829,000,000 435,000,000²29,000,000%%Price$227039b. Compute the percentage change in the value of each index during the year. Do not round intermediate calculations. Round your answers to two decimal places.Percentage change in PWI:%Stock KStock MStock RaStock split two-for-one during the year.Percentage change in VWI:c. Compute the percentage change for an unweighted index assuming $1,000 is invested in each stock. Do not round intermediate calculations. Round your answer to two decimal places.

A price-weighted index is a sort of stock market index in which it assigns member companies a weight…

a. Compute the beginning and ending values for a price-weighted index and a market-value-weighted index. Assume a base value of 100 and Year 1 as the base period. Do not round intermediate calculations. Round answers to two decimal places. PWIyear 1: PWIYear 2: VWIyear 1: VWIyear 21 b. Compute the percentage change in the value of each index during the year. Do not round intermediate calculations. Round your answers to two decimal places. Percentage change in PW1: Percentage change in VWI: c. Compute the percentage change for an unweighted index assuming $1,000 is invested in each stock. Do not round intermediate calculations. Round your answer to two decimal places. % %

a. Compute the beginning and ending values for a price-weighted index and a market-value-weighted index. Assume a base value of 100 and Year 1 as the base period. Do not round intermediate calculations. Round answers to two decimal places. PWIyear 1: PWIYear 2: VWIyear 1: VWIyear 21 b. Compute the percentage change in the value of each index during the year. Do not round intermediate calculations. Round your answers to two decimal places. Percentage change in PW1: Percentage change in VWI: c. Compute the percentage change for an unweighted index assuming $1,000 is invested in each stock. Do not round intermediate calculations. Round your answer to two 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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You have the following information: t1 t2 t3 t4 TSLA Returns 0.05 -0.04 0.1 -0.01 Market Returns 0 -0.04 0.01 0.01 What is the Covariance of TSLA and the Market? Type your answer as decimal (i.e. 0.052 and not 5.2%). Round your answer to the nearest four decimals if needed.
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Letters d and e only

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