Question

5. A price-weighted index has 3 stocks: A, B and C. Their price at the start...

5. A price-weighted index has 3 stocks: A, B and C. Their price at the start of the index was $35, $48 and $90.

What is the initial divisor if the index start with a value of 100?

By the end of the first year, the price of the 3 stocks is $40, $52 and $83 respectively. How much has the index gone up?

If stock C has a 3-for-1 split, what would be the new index value after one year?

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
A price-weighted index consists of stocks A, B, and C which are priced at $50, $35,...
A price-weighted index consists of stocks A, B, and C which are priced at $50, $35, and $15 a share, respectively. The current index divisor is 2.75. What will the new index advisor be if stock A undergoes a 5-for-1 stock split? A. 0.40 B. 0.65 C. 1.00 D. 1.65
A price-weighted index consists of stocks A, B, and C which are priced at $38, $24,...
A price-weighted index consists of stocks A, B, and C which are priced at $38, $24, and $26 a share, respectively. The current index divisor is 2.7. What will the new index divisor be if stock B undergoes a 3-for-1 stock split? (Round your final answer to four decimal points.)
A price-weighted index consists of stocks A, B, and C which are priced at $50, $35,...
A price-weighted index consists of stocks A, B, and C which are priced at $50, $35, and $15 a share, respectively. The current index divisor is 2.75. What will the new index advisor be if stock A undergoes a 5-for-1 stock split? Multiple Choice A. 0.40 B. 0.65 C. 1.00 D. 1.65 1.85
Assume that you construct a price weighted index of 30 stocks. The sum of the prices...
Assume that you construct a price weighted index of 30 stocks. The sum of the prices of these stocks is $4000. The divisor for this index is 30, and the value of this index is 100. Now assume that one of the 30 stocks, with an average price of $400, has a four-for-one stock split while the value of other stocks remains unchanged. a) If you make no adjustments to the index, what will be the new value of the...
You are given the following information concerning two stocks that make up an index. What is...
You are given the following information concerning two stocks that make up an index. What is the percentage value-weighted return for the index? Shares Outstanding Beginning of Year Price End of year Price Kirk, Inc. 46,000 $83 $90 Picard Co. 60,000 40 52
Problem 5-1 Price-Weighted Divisor (LO4, CFA2) Able, Baker, and Charlie are the only three stocks in...
Problem 5-1 Price-Weighted Divisor (LO4, CFA2) Able, Baker, and Charlie are the only three stocks in an index. The stocks sell for $38, $200, and $106, respectively. If Baker undergoes a 3-for-2 stock split, what is the new divisor for the price-weighted index? (Do not round intermediate calculations. Round your answer to 5 decimal places.)
An index consists of three stocks (A, B, C). The prices of these three stocks are...
An index consists of three stocks (A, B, C). The prices of these three stocks are $45, $126, and $64, respectively. If Stock B has a 3-for-1 stock split, what is the new index divisor?
The Hydro Index is a price weighted stock index based on the 4 largest boat manufacturers...
The Hydro Index is a price weighted stock index based on the 4 largest boat manufacturers in the nation. Consider the four stocks in the following table. Pt represents price at time t, and Qt represents shares outstanding at time t. (Please pay close attention to stock split) P0 Q0 P1 Q1 P2 Q2 A 80 200 90 200 98 200 B 50 300 40 300 50 300 C 90 200 110 200 115 200 D 100 100 90 100...
A price-weighted index consists of four stocks. Here are their prices: PA=$ 10; PB=$ 25; PC=...
A price-weighted index consists of four stocks. Here are their prices: PA=$ 10; PB=$ 25; PC= $ 24; PD= $ 36 Stock C has a 3:1 stock split. What will be the new divisor? (Round your answer to two decimals)
Below is a list of 3 stocks. Calculate the return based on price-weighted index, value-weighted index,...
Below is a list of 3 stocks. Calculate the return based on price-weighted index, value-weighted index, and equal-weighted index. (Assume you invested yesterday). Stock Price yesterday Price today Market Cap (billions) JPM $116 $115 362 WFC $49 $48 214 BAC $28 $29 259
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT