Question

1. When computing a value-weighted index, we use a "Divisor". True False 2. The primary market...

1. When computing a value-weighted index, we use a "Divisor".

True

False

2. The primary market for stocks is the IPO market, not the stock market.

True

False

3. An index has a market value of 13,447.25 at the beginning of the period and 13,893.57 at the end of the period. If you want the beginning index value to be 2,000, what will be the ending index value?

a.

2,000

b.

13,893.57

c.

13,447.25

d.

none

ANSWER all or i will be giving a thumbs down and explain your answer

Thank you

Homework Answers

Answer #1

1.) True : while computing value weighted index we use a divisor. Reason the formula as follows sum of the market capitalization for each company and divided it by a divisor which will help to make it a round number.

2.) True: The primary market for stocks is the IPO market initial public offering. The governmanet companies can raise the capital by issuing shares in stock through initial public offerings. The stock markets are the secondary markets.

3.) Ending index value (13,893.57 / 13,447.25 ) * 2000 = 2,066.38

   Hence the option is none i.e., D

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
You construct a price-weighted index of 33 stocks. At the beginning of the day, the index...
You construct a price-weighted index of 33 stocks. At the beginning of the day, the index is 9,241.90. During the day, 32 stock prices remain the same, and 1 stock price increases $4.10. At the end of the day, your index value is 9,267.86. What is the divisor on your index? (Do not round intermediate calculations. Round your answer to 8 decimal places.)
True or false. If your answer is false, you must justify your answer with a one...
True or false. If your answer is false, you must justify your answer with a one sentence explanation to receive any credit. An asset depreciated in the 3-years MACRS class will have book value of 0 at the end of 3 years. The discounted payback period will always be no shorter than the undiscounted payback period. If the internal rate of return on an investment is positive, then the investment’s net present value must be positive. You are purchasing a...
2 Why do most professionals consider the Wilshire 5000 a better index of the performance of...
2 Why do most professionals consider the Wilshire 5000 a better index of the performance of the broad stock market than the Dow Jones Industrial Average? ( LO 2- 2) 7. What is meant by the LIBOR rate? The Federal funds rate? ( LO 2- 1) 9. Why are corporations more apt to hold preferred stock than are other potential investors? (LO 2-1) 13. A municipal bond carries a coupon rate of 6 ¾ % and is trading at par....
True or​ False: The best measure to use when comparing alternative investments is the amount of...
True or​ False: The best measure to use when comparing alternative investments is the amount of the dollar gain or loss. With holding periods of more than a​ year, annualizing the HPR makes it smaller. The lower the correlation coefficient between two​ stocks, the greater will be the benefit from diversifying by combining the two stocks in a portfolio. Based on the period 1950​ – 1999, you would have the less uncertainty about any expected return on small company stocks...
1.Qualified Residence Interest is acquisition indebtedness on a primary or secondary personal residence True False 2.Sydney...
1.Qualified Residence Interest is acquisition indebtedness on a primary or secondary personal residence True False 2.Sydney purchases a piece of real estate in 1990. A redevelopment project is announced nearby that increases the value of the property by $700,000. As a result Sydney must report a $700,000 gain in the year of the announcement. True False 3. Sam has plastic surgery on his nose to improve his breathing and treat his sleep apnea. The plastic surgery is an allowable medical...
1. True – False. Front running is when other market players might learn about a fund’s...
1. True – False. Front running is when other market players might learn about a fund’s intentions and trade in advance, hoping to profit. 2. The retirement channel is a two sales process because you must: a. Sell twice as much to achieve same profits b. Sell to the plan sponsor and participants c. Become the plan administrator and sell to the sponsoring firm 3. True/False. Hedge funds and other large money managers do not like to use dark pools...
PLEASE ANSWER THEM ALL, WILL GIVE THUMBS UP 1) Which Statement is True? a) ABC Corp....
PLEASE ANSWER THEM ALL, WILL GIVE THUMBS UP 1) Which Statement is True? a) ABC Corp. has a return on investment (ROI) of 12% and a weighted average cost of capital (WACC) of 11%, while XYZ Corp. has an ROI of 10% and a WACC of 8%. In this situation, XYZ is performing better than ABC because XYZ is generating a higher Economic Value Added (EVA) b) If you were super rich and had a huge portfolio of stocks that...
We present 2 examples of the corporate valuation model. In the first problem, we assume that...
We present 2 examples of the corporate valuation model. In the first problem, we assume that the firm is a mature company so its free cash flows grow at a constant rate. In the second problem, we assume that the firm has a period of nonconstant growth. a. Assume today is December 31, 2019. Barrington Industries expects that its 2020 after-tax operating income [EBIT(1 – T)] will be $410 million and its 2020 depreciation expense will be $60 million. Barrington's...
1-25 True or False 1. Sales revenue is an inflow of assets. 2. The three distinct...
1-25 True or False 1. Sales revenue is an inflow of assets. 2. The three distinct types of cost to a manufacturer are direct materials, direct labor, and manufacturing overhead.                       3. Sales Returns and Allowances is a contra-asset account. 4. Like sales revenue, cost of goods sold represents an inflow of assets. 5. With the periodic inventory system the inventory account is updated after each sale or purchase. 6. When merchandise is sold FOB shipping point, the buyer is responsible...
1) If the Federal Reserve conducts an open market purchase, we can expect that the short-run...
1) If the Federal Reserve conducts an open market purchase, we can expect that the short-run Phillips curve will shift left. the short-run Phillips curve will shift right. t here will be a movement to the right along the short-run Phillips curve. there will be a movement to the left along the short-run Phillips curve. the long-run Phillips curve will shift right. 2) In the long run, the Phillips Curve shows that the natural rate of unemployment is independent of...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT
Active Questions
  • In your travels or readings, what branding strategies, activities or identifiers have major U.S. brands altered...
    asked 1 minute ago
  • Find the mean of the data summarized in the given frequency distribution. Compare the computed mean...
    asked 1 minute ago
  • Prove that √3 is irrational. You may use the fact that n2 is divisible by 3...
    asked 3 minutes ago
  • You are the vice president of a 60-bed cardiac hospital. Last year your hospital generated about...
    asked 8 minutes ago
  • A company has an 11% WACC and is considering two mutually exclusive investments (that cannot be...
    asked 11 minutes ago
  • Century National Bank has offices in several cities in the Midwest and the southeastern part of...
    asked 22 minutes ago
  • Constructivist learning approaches and techniques ALL emphasize Select one: a. school based learning activities b. group...
    asked 52 minutes ago
  • 9.1.5 Are there more children diagnosed with Autism Spectrum Disorder (ASD) in states that have larger...
    asked 54 minutes ago
  • A simple pendulum with a length of 2.73 m and a mass of 6.54 kg is...
    asked 1 hour ago
  • Step 3: Complete the following chart by writing what the counter and the totalNumbers value stores...
    asked 1 hour ago
  • The difference between Independent-measures ANOVA and Repeated-measures ANOVA is that the variance estimates for the Repeated-measures...
    asked 1 hour ago
  • Use Pinterest to find a picture for each that best illustrates intrapersonal intelligence and interpersonal intelligence...
    asked 1 hour ago