Question

"A benchmark index has three stocks priced at $32, $35, and $70. The number of outstanding shares for each is 350000 shares, 405000 shares, and 553000 shares, respectively. Suppose the price of these three stocks changed to $30, $40, and $62 and number of outstanding shares did not change, what is the equal-weighted index return?"

-3.65% |
||

0.72% |
||

-1.13% |
||

-4.45% |

question 18

Answer #1

**Option C -1.13%**

Equally weighted Index Return = (Sum of return of each stock in index) / Number of stocks in index

A benchmark market value index is comprised of three stocks.
Yesterday the three stocks were priced at $22, $32, and $70. The
number of outstanding shares for each is 780,000 shares, 680,000
shares, and 380,000 shares, respectively. If the stock prices
changed to $26, $30, and $72 today respectively, what is the 1-day
rate of return on the index?
4.52%
3.85%
2.69%
6.05%

14
A benchmark index has three stocks priced at $40, $63, and $73.
The number of outstanding shares for each is 435,000 shares,
575,000 shares, and 723,000 shares, respectively. If the market
value weighted index was 950 yesterday and the prices changed to
$40, $59, and $77 today, what is the new index value?
Multiple Choice
945
950
955
940

A price-weighted index has three stocks priced at $19, $22, and
$33. The number of outstanding shares for each is 100,000 shares,
200,000 shares and 220,000 shares, respectively. If prices changed
to $18, $19, and $39 at t=1 , what is the rate of return of the
index for this period?

Suppose that a stock index is constructed with three stocks
priced at $7, $43, and $56. The number of outstanding shares for
each is 500,000 shares, 405,000 shares, and 553,000 shares,
respectively. Today the prices for each stock are changed to $14,
$44, and $52 and the number of outstanding shares for each are
changed to 250,000 shares, 405,000 shares and 553,000 shares today,
what is the equal weighted index value today if the index yesterday
was 1000?

Suppose that a stock index is constructed with three stocks
priced at $7, $43, and $56. The number of outstanding shares for
each is 500,000 shares, 405,000 shares, and 553,000 shares,
respectively. Today the prices for each stock are changed to $14,
$44, and $52 and the number of outstanding shares for each are
changed to 250,000 shares, 405,000 shares and 553,000 shares today,
what is the price weighted index value today if the index yesterday
was 10,500?

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 $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

1. Three stocks have share prices of $25, $50, and $30 with
total market values of $400 million, $250 million, and $150
million, respectively. If you were to construct a market
value-weighted index of the three stocks, what would be the index
value? ① 8,500 ② 9,000 ③ 9,250 ④ 9,500
1)-1 With the above benchmark index, today the prices of three
stocks changed to $30, $45 and $35. What would be the new index
value? ① 9,250 ② 9,500...

An index consists of 3 stocks: A, B and C. At date 0, the prices
per share for A, B and C are $13, $60, and $15, respectively. At
date 0, the number of shares outstanding for A, B, and C are 100,
120, and 3000 respectively. At date 1, the prices per share for A,
B and C are $12, $22, and $12, respectively. At date 1, the number
of shares outstanding for A, B, and C are 100,...

The following three defense stocks are to be combined into a
stock index in January 2016 (perhaps a portfolio manager believes
these stocks are an appropriate benchmark for his or her
performance). Assume the index is scaled by a factor of 10 million;
that is, if the total value of all firms in the market is $5
billion, the index would be quoted as 500.
Price
Shares
(millions)
1/1/16
1/1/17
1/1/18
Douglas McDonnell
360
$
65
$
69
$
83...

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