Question: An index is based on three stocks. Using the information in the table below, calculate the index return assuming it is value-weighted . Report your
- An index is based on three stocks. Using the information in the table below, calculate the index return assuming it is value-weighted. Report your answer as a percentage and to the nearest 0.01% (e.g. enter 3.95% as 3.95).
| Stock | Initial Price | Final Price | Shares (in millions) |
| A | $10 | $12 | 30 |
| B | $250 | $240 | 1 |
| C | $100 | $105 | 5 |
2. You bought a stock for $10 and sold it 2 years later for $14. Each quarter you received a $0.25 dividend. What was your annualized rate of return? Report your answer as a percentage and to the nearest 0.01% (e.g. enter 3.95% as 3.95).
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