Question

An index is made up of three stocks: Ticker Price Market cap ABC $42 $100M DEF...

An index is made up of three stocks:

Ticker Price Market cap ABC $42 $100M DEF $12 $300M GHI $7 $150M What percentage of the index is DEF if the index is:

1) Price weighted

2) Cap weighted

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Consider: a) price-weighted and then b) market value weighted index consisting of 3 stocks A, B,...
Consider: a) price-weighted and then b) 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 percentage change in index levels from time 0 to time 1. Round answers to 4 decimal places. Please show work! stock p0 p1 outstanding shares A 40 45 200 B 70 50 500 C 10 12 600 I think...
The four stocks below are part of an index. Use the information below: a. Compute a...
The four stocks below are part of an index. Use the information below: a. Compute a price-weighted index by adding their prices at time t and time t 1 1. What is the percentage change in the index? b. Compute a value-weighted index by adding their market values at time t and time t 1 1. What is the percentage change in the index? c. Why is there a difference between your answers to (a) and (b)? # OF SHARES...
Match the description to the correct index. 1. An price-weighted average of 30 stocks. 2. The...
Match the description to the correct index. 1. An price-weighted average of 30 stocks. 2. The best measure of overall market performance. 3. A market-value weighted index heavily weighted in technology stocks. Dow Jones Industrial Average S&P 500 Nasdaq
onsider the three stocks in the following table. Pt represents price at time t, and Qt...
onsider the three stocks in the following table. Pt represents price at time t, and Qt represents shares outstanding at time t. Stock C splits two-for-one in the last period. P0 Q0 P1 Q1 P2 Q2 A 87 100 92 100 92 100 B 47 200 42 200 42 200 C 94 200 104 200 52 400 a. Calculate the rate of return on a price-weighted index of the three stocks for the first period (t = 0 to t...
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
The ABC stock index is based on the listed price of stock in three companies, A,...
The ABC stock index is based on the listed price of stock in three companies, A, B and C. The index is market weighted and corrected for dividends and stock splits. On Day 1, the index is at 2000 points when markets close. Then the price of each share in A is 3,24, in B 0,75 and in C 6,7. There have been issued (and sold to investors) 100 million shares in A, 250 million in B and 100 million...
Consider the three stocks in the following table. Pt represents price at time t, and Qt...
Consider the three stocks in the following table. Pt represents price at time t, and Qt represents shares outstanding at time t. Stock C splits two-for-one in the last period. P0 Q0 P1 Q1 P2 Q2 A 87 100 92 100 92 100 B 47 200 42 200 42 200 C 94 200 104 200 52 400 Calculate the first-period rates of return on the following indexes of the three stocks: (Do not round intermediate calculations. Round your answers to...
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...
A market basket is made up of three goods, 10X, 15Y, and 20Z. The prices in...
A market basket is made up of three goods, 10X, 15Y, and 20Z. The prices in the base year are $1, $2, and $3, respectively. The prices in the current year are $1.50, $2.50, and $3.50. What is the approximate consumer price index in the current year?
A price-weighted index has three stocks priced at $19, $22, and $33. The number of outstanding...
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?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT