You are given the following information regarding prices for a sample of stocks. Stock B: Stock A B с Stock C: Number of Shares 1,500,000 13,000,000 30,000,000 PRICE T 7+1 $98 37 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: % $80 26 23 % Compute the arithmetic mean of these percentage changes. Do not round intermediate calculations. Round your answer to two decimal places. % c. Compute the geometric mean of the percentage changes in Part b. Do not round intermediate calculations, Round your answer to two decimal places

You are given the following information regarding prices for a sample of stocks. Stock B: Stock A B с Stock C: Number of Shares 1,500,000 13,000,000 30,000,000 PRICE T 7+1 $98 37 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: % $80 26 23 % Compute the arithmetic mean of these percentage changes. Do not round intermediate calculations. Round your answer to two decimal places. % c. Compute the geometric mean of the percentage changes in Part b. 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 a portfolio with the following: Stock Number of Shares Price Expected Return W 1,000 $ 57 14% X 900 34 18 Y 650 70 16 Z 875 55 17 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.)
A stock has had the following year-end prices and dividends: TIT Year Price Dividend $16.25 1 18.43 $ .15 2 19.43 .30 3 17.93 .33 4 20.27 .34 23.38 .40 What are the arithmetic and geometric returns for the stock? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Arithmetic return |% Geometric return
1. Consider the three stocks in the following table. P, represents price at time t, and Q, represents shares outstanding at time t. Calculate the rates of return on the following indexes of the three stocks: A B с Po 90 50 100 a. A market-value-weighted index. b. An equally weighted index. Qo 100 200 200 P₁ 95 45 110 Q₁ 100 200 200
You own a portfolio that has $1,331 invested in Stock A and $2,857 invested in Stock B. If the expected returns on these stocks are 0.08 and -0.01, respectively, what is the expected return on the portfolio? Enter the answer with 4 decimals (e.g. 0.1234).
Consider a market value-weighted index consisting of 3 stocks: A, B, and C. The stocks' prices at time 0 (p0) and time 1 (p1) are given below, along with the number of shares outstanding. Calculate the index levels at time 0. Round your answer to 4 decimal places. For example, if your answer is 3.205%, then please write down 0.0321. stock p0 p1 outstanding shares 43 45 200 69 50 500 11 12 600 A B C
There are three stocks in a price-weighted index: A $100 B $20 C $60 a. What is the average value for the index? b. Assume stock A goes down by 25 percent and stock B goes up by 25 percent, and stock C remains the same. What is the new average value for the index? c. Explain why in part b the average changed with two stocks moving up and down by the same percentage amount.
financial advisor evaluates four stocks for inclusion in an investor's portfolio. A orrelation matrix showing each stock's correlation with the other stocks is shown below Stock ALK CMN BTY DLE ALK 0.40 0.58 1.00 -0.25 BTY 0.40 1.00 0.16 -0.04 CMN -.25 .16 1.00 .37 DLE .58 .04 .37 1.00 f the goal is to reduce the investor's overall portfolio risk, which two stocks should the advisor recommend? a. ALK and DLE b. ALK and CMN c. BTY and DLE BTY and CM
You own a portfolio that has $5,758 invested in Stock A and $1,616 invested in Stock B. If the expected returns on these stocks are -0.12 and 0.24, respectively, what is the expected return on the portfolio? Enter the answer with 4 decimals (e.g. 0.1234).
Data: So 101; X= 114; 1+r= 1.12. The two possibilities for sr are 143 and 85.
How can I calculate geometric average in Excel?
Syntex, Inc. is considering an investment in one of two common stocks. Given the information that follows, which investment is better, based on the risk (as measured by the standard deviation) and return? Common Stock A Common Stock B Probability Return Probability Return 0.35 13% 0.25 −7% 0.30 17% 0.25 8% 0.35 21% 0.25 15% 0.25 23% (Click on the icon in order to copy its contents into a spreadsheet.) Question content area bottom Part 1 a. Given the information in the table, the expected rate of return for stock A is enter your response here%. (Round to two decimal places.)
can you do the question b please

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