a. Based on the following stock price and shares outstanding information compute the beginning and ending...
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a. Based on the following stock price and shares outstanding information compute the beginning and ending values for a price-weighted index and a market-value-weighted index. (12 Marks) DECEMBER 31, 2011 Price Shares Outstanding Price DECEMBER 31, 2012 Share Outstanding Stock K 20 100,000,000 32 100,000,000 Stock M 80 2,000,000 45 4,000,000 Stock R 40 25,000,000 42 25,000,000 Stock M split two-for-one during the year. b. Compute the percentage change in the value of each index during the year c. Explain the difference in results between the two indexes. (8 Marks) (5 Marks) a. Based on the following stock price and shares outstanding information compute the beginning and ending values for a price-weighted index and a market-value-weighted index. (12 Marks) DECEMBER 31, 2011 Price Shares Outstanding Price DECEMBER 31, 2012 Share Outstanding Stock K 20 100,000,000 32 100,000,000 Stock M 80 2,000,000 45 4,000,000 Stock R 40 25,000,000 42 25,000,000 Stock M split two-for-one during the year. b. Compute the percentage change in the value of each index during the year c. Explain the difference in results between the two indexes. (8 Marks) (5 Marks)
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a Beginning and Ending Values for PriceWeighted Index and MarketValueWeighted Index PriceWeighted Index To calculate the priceweighted index you sum t... View the full answer
Related Book For
Investment Analysis and Portfolio Management
ISBN: 978-0538482387
10th Edition
Authors: Frank K. Reilly, Keith C. Brown
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