A market index has a total of three firms and a beginning value of 1,100. Information on the three firms is as follows:

Firm              Begin Price            End Price            Shares

A.                  $125.00                   $150.00                  15

B.                  $30.00                     $27.00                  850

C.                 $75.00                       $78.00                  420

Required

1. Calculate the % return for each of the three firms.

Calculate the index return and ending value for:

2. Equally weighted index return=

Ending value =

3. Price weighted index return =

Ending value =

4. Value weighted index return =

Ending value =

(Show working)

Answer rating: 100% (QA)

1 To calculate the return for each of the three firms we use the formula return end price begin pric... View the full answer