You are given the following information regarding prices for a sample of stocks. Stock A B с Number of Shares 1,500,000 13,000,000 30,000,000 Stock B: Stock C: PRICE T 7+1 $80 $98 26 37 23 29 a. Construct an equal-weighted index by assuming $1,000 is invested in each stock. What is the percentage change in wealth for this portfolio? Do not round intermediate calculations. Round your answer to two decimal places. b. Compute the percentage of price change for each of the stocks. Do not round intermediate calculations. Round your answers to two decimal places. Stock A:
You are given the following information regarding prices for a sample of stocks. Stock A B с Number of Shares 1,500,000 13,000,000 30,000,000 Stock B: Stock C: PRICE T 7+1 $80 $98 26 37 23 29 a. Construct an equal-weighted index by assuming $1,000 is invested in each stock. What is the percentage change in wealth for this portfolio? Do not round intermediate calculations. Round your answer to two decimal places. b. Compute the percentage of price change for each of the stocks. Do not round intermediate calculations. Round your answers to two decimal places. Stock A:
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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1
Transcribed Image Text:You are given the following information regarding prices for a sample of stocks.
Stock
A
B
C
Number of Shares
1,500,000
13,000,000
30,000,000
%
T
$80
26
23
a. Construct an equal-weighted index by assuming $1,000 is invested in each stock. What is the percentage change in wealth for this portfolio? Do not round
intermediate calculations. Round your answer to two decimal places.
PRICE
%
b. Compute the percentage of price change for each of the stocks. Do not round intermediate calculations. Round your answers to two decimal places.
7+1
$98
37
29
Stock A:
Stock B:
Stock C:
%
Compute the arithmetic mean of these percentage changes. Do not round intermediate calculations. Round your answer to two decimal places.
8
E
46
L
c. Compute the geometric mean of the percentage changes in Part b. Do not round intermediate calculations. Round your answer to two decimal places
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