A portfolio includes seven stocks and the information related to these stocks are given in the table below:

Calculate the price-only return on the index of the portfolio when the index is 

(i) price weighted,

 (ii) value-weighted, 

(iii) float-weighted

(iv) equal-weighted.

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Share price, Share price, Dec 31, Securities Number of shares Number of shares Dec 31, outstanding publicly traded 2010 2011 A 12 14 10,000,000 10,000,000 15 18 14,000,000 14,000,000 20 23 50,000,000 30,000,000 D 25 22 30,000,000 25,000,000 E 40 42 80,000,000 60,000,000 F 16 18 32,000,000 22,000,000 G 10 07 15,000,000 12,000,000 Share price, Share price, Dec 31, Securities Number of shares Number of shares Dec 31, outstanding publicly traded 2010 2011 A 12 14 10,000,000 10,000,000 15 18 14,000,000 14,000,000 20 23 50,000,000 30,000,000 D 25 22 30,000,000 25,000,000 E 40 42 80,000,000 60,000,000 F 16 18 32,000,000 22,000,000 G 10 07 15,000,000 12,000,000

Answer rating: 100% (QA)

The data given with some calculations is as shown below Share price Share price PRICE RELATIVE Numbe... View the full answer