Consider 2 stocks in the following table. We create a stock index of companies that makestuff for Spring Break.stocksQOABC, Inc.500XYZ, Inc.600What is the initial portfolio weight for stock ABC in a market value-weighted index of thesetwo stocks (in percent to 2 decimal places, so 10% is 10.00, not 0.10)?PO$140$260P1Q1$181500$230 600

Market value weighted index is also known as capitalization weighted index. This is a stock market…

Consider 2 stocks in the following table. We create a stock index of companies that make stuff for Spring Break. PO $140 $260 stocks QO Q1 ABC, Inc. 500 500 XYZ, Inc. 600 600 What is the initial portfolio weight for stock ABC in a market value-weighted index of these two stocks (in percent to 2 decimal places, so 10% is 10.00, not 0.10)? P1 $181 $230

Consider 2 stocks in the following table. We create a stock index of companies that make stuff for Spring Break. PO $140 $260 stocks QO Q1 ABC, Inc. 500 500 XYZ, Inc. 600 600 What is the initial portfolio weight for stock ABC in a market value-weighted index of these two stocks (in percent to 2 decimal places, so 10% is 10.00, not 0.10)? P1 $181 $230

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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An index consists of the following securities and has an index divisor of 3.0. What is the price-weighted index return? Index Stock Shares Outstanding 1,000 Beginning Share Price $26 Ending Share Price 4,000 $32 $28 $30 3,000 $19 $ 22 DEF 9.33% 10.35% 11.54% 12.33% 13.00%
You have a portfolio with the following: Stock Number of Shares W NAXM 1,075 975 Y Z 725 950 Price $ 60 6325 37 73 58 Expected Return 12% 16 14 15 What is the expected return of your portfolio? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. Expected return
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
Report the beta of each stock and demonstrate a clear understanding of the concept of market efficiency.
Please answer fast I give you upvote.
Consider the following annual closing prices of stock A, values of market index (S&P 500) and Treasury bills rate. A B C с D Date Stock A Prices (in $) Market Index Value Risk Free Rate (in %) 2 Period 1 119 3 Period 2 100 11829 11843 9639 88 131 12854 9580 11640 8469 11412 9115 10682 NOSAWNH 1 4 Period 3 Period 4 6 Period 5 7 Period 6 8 Period 7 9 Period 8 10 Period 9 11 Period 10 12 O 1.1 13 What is the value of CAPM beta for stock A? O 1.4666 O 1.8333 O2.0533 82 113 O 0.3666 65 109 95 113 1.48 1.76 1.64 1.2 1.43 1.36 1.3 1.72 1.71 1.77
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
Consider the following information: State Probability Stock A Stock B Stock C Boom 0.32 0.09 -0.01 0.01 Bust 0.68 -0.05 0.28 0.03 What is the expected return of a portfolio that has invested $9,981 in Stock A, $6,817 in Stock B, and $2,123 in Stock C? (Hint: calculate weights of each stock first). Enter the answer with 4 decimals (e.g. 0.1234).
Ralph is constructing a price-weighted index. On March 1, 2XX1, he has the following stocks in the index: Company Share price # shares outstanding Walmart $42.6 26,000 Kmart $18.76 19,000 Venture $55.11 63,000 Macy’s $39.61 45,000 What is the price-weighted index on March 1, 2XX1? (Do not round intermediate calculations. Round your answers to 3 decimal places. (e.g., 32.167))
Give typing answer with explanation and conclusion
Please complete in Excel (and show work): If returns of S&P 500 stocks are normally distributed, what range of returns would you expect to see 95% of the time? Base your answer on Figures 11.3 (left) and 11.4 (right).
You have a portfolio with the following: Stock Number of Shares Price Expected Return W 1,025 $ 58 11% X 925 35 15 Y 675 71 13 Z 900 56 14 What is the expected return of your portfolio? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

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