index returns Stock A has and initial price of $93, an ending price of $97, and 1,000 shares of common stock outstanding. Stock B has an initial price of $30, an ending price of $29, and 8,000 shares of common stock outstanding. a. Calculate the price-weighted return over the time period. b. Calculate the value-weigted return over the time period. c. Calculate the equal-weigted return over the time period (equal weight in each stock). (Do not round intermediate calculations. Enter your final answer as a percentage rounded to two decimal places (ex. 12.34% should be entered as 12.34). a. Price weighted return % b. Value weighted return % C. Equal weighted return %
index returns Stock A has and initial price of $93, an ending price of $97, and 1,000 shares of common stock outstanding. Stock B has an initial price of $30, an ending price of $29, and 8,000 shares of common stock outstanding. a. Calculate the price-weighted return over the time period. b. Calculate the value-weigted return over the time period. c. Calculate the equal-weigted return over the time period (equal weight in each stock). (Do not round intermediate calculations. Enter your final answer as a percentage rounded to two decimal places (ex. 12.34% should be entered as 12.34). a. Price weighted return % b. Value weighted return % C. Equal weighted return %
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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Transcribed Image Text:index returns
Stock A has and initial price of $93, an ending price of $97, and 1,000 shares of common stock outstanding. Stock B has an initial
price of $30, an ending price of $29, and 8,000 shares of common stock outstanding.
a. Calculate the price-weighted return over the time period.
b. Calculate the value-weigted return over the time period.
c. Calculate the equal-weigted return over the time period (equal weight in each stock).
(Do not round intermediate calculations. Enter your final answer as a percentage rounded to two decimal places (ex. 12.34%
should be entered as 12.34).
a.
Price weighted return
%
b.
Value weighted return
%
C.
Equal weighted return
%
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