Assume 3 stocks X, Y and Z and construct an index consisting of the top 2...

 

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Assume 3 stocks X, Y and Z and construct an index consisting of the top 2 stocks by market capitalisation. Share price Shares Period 1 Period 2 Period 3 X 1,000 $10 $10 $10 Y 20,000 $1 $1 $1 Z 10,000 $3 $5 $3 Z declares a dividend of $2 per share and its stock trades 'cum div' Period 2 and 'ex div' Period 3 Estimate the value of the accumulation index in period 3. A) 2.2 or 2,200 B) 3.857 or 3,857 C) 4.0 or 4,000 D) 4.333 or 4,333 E) None of the above ANTEN- Assume 3 stocks X, Y and Z and construct an index consisting of the top 2 stocks by market capitalisation. Share price Shares Period 1 Period 2 Period 3 X 1,000 $10 $10 $10 Y 20,000 $1 $1 $1 Z 10,000 $3 $5 $3 Z declares a dividend of $2 per share and its stock trades 'cum div' Period 2 and 'ex div' Period 3 Estimate the value of the accumulation index in period 3. A) 2.2 or 2,200 B) 3.857 or 3,857 C) 4.0 or 4,000 D) 4.333 or 4,333 E) None of the above ANTEN-

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To estimate the value of the accumulation index in period 3 we need to consider the changes in the s... View the full answer