Question: Consider the following security information for four securities making up an index: Security Price Shares Outstanding time = 0 time = 1 1 6 8

Consider the following security information for four securities making up an index:

Security

Price

Shares Outstanding

time = 0

time = 1

1

6

8

20 million

2

20

25

50 million

3

35

27

120 million

4

50

55

75 million

What is the value of the index at time 1 using a value-weighted approach?

Question 7 options:

0.946

0.965

1.036

1.057

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Q:

Mae Telford, the controller of the Baylor Company, provided the following information: The Cash account in the general ledger appeared as follows on November 30 (Baylor Company uses only a general...

Q:

Consider the following security information for four securities making up an index: Price Shares Security Time=0 Time=l Outstanding 1 8 13 20 million 2 22 25 50 million 3 35 30 120 million 4 50 55 75...

Q:

Consider the following security information for four securities making up an index. What is the change in the value of the index from t = 0 to t = 1 if the index is calculated using a value-weighted...

Q:

Consider the following security information for four securities making up an index: Security Price Time = 0 Price Time = 1 Shares Outstanding (millions) 1 8 13 20 2 22 25 50 3 35 30 120 4 50 55 75...

Q:

14. Consider the following security information for 4 securities making up an index: Price Shares Security time = 0 time = 1 Outstanding 8 13 20 million 2 22 25 50 million 3 35 30 120 million 4 50 55...

Q:

14. Consider the following security information for 4 securities making up an index: Price Shares Security time = 0 time = 1 Outstanding 8 13 20 million 2 22 25 50 million 3 35 30 120 million 4 50 55...

Q:

Consider the following security information for four securities making up an index: What is the change in the value of the index from Time = 0 to Time = 1 if the index is calculated using a...

Q:

14. Consider the following security information for four securities making up an indew What is the change in the value of the index from Time 0 to Time 1 if the index is calculated using a...

Q:

Consider the following security information for four securities making up an index: What is the change in the value of the index from Time 5 0 to Time 5 1 if the index is calculated using a...

Q:

14. Consider the following security information for four securities making up an index: Security Price Time = 0 Price Time = 1 Shares Outstanding (millions) 1 8 13 20 2 22 25 50 3 35 30 120 4 50 55...

Q:

2.1. HBHEnterprises is a large publicly listed company, specialised in manufacturing washing machines. The company is looking to set up a manufacturing plant to produce a new line of washing...

Q:

Both service and manufacturing operations transform raw materials into finished products; but which operations are more complicated, is it service or manufacturing? Briefly explain your answer.

Q:

A report in The Washington Post (April 26, 2009) stated that the average age for men to marry in the United States is now 28 years of age. If the standard deviation is assumed to be 3.2 years, find...

Q:

A change in a law could impact investments and could expose a person's investments to what type of risk?

Q:

Investigation into product diversification options for FCC has focused on producing a propylene - rich product from a surplus saturated liquid stream ( at 2 7 9 . 2 psig, 8 5 . 1 C ) that is...