Question: Examine the two methods for determining the index returns for the following three stocks * Stock C had a 2/1 stock split after the market

Examine the two methods for determining the index returns for the following three stocks

Examine the two methods for determining the index returns for the following

* Stock C had a 2/1 stock split after the market close on 2/15.

a. In a short sentence, explain precisely why the returns for these indexes are so different.

What, specifically, drove the difference in this example?

HPR 15-Feb $ 16-Febl $ 20.00 $ 15.00 $ B 50.00 $ 40.00 $ 100.00 55.00 Price Weighed Index $ 56.67 51.94 Value Weighted Index 100.00 -8.33% HPR Value 15-Feb $ 180,000.00 $ 50,000.00 $ 10,000.00 $ 240,000.00 Shares 9000 1000 100 77.50 -22.50% 16-Feb $ 135,000.00 $ 40,000.00 $ 11,000.00 $186,000.00 Shares 9000 1000) 200

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!

18. Examine the two methods for determining the index returns for these three stocks. | HPR A 20.00 15.00 Price Weighed Index 56.67 51.94 15-Feb 16-Feb $ B 50.00 40.00 100.00 55.00 -8.33% Value...

18. Examine the two methods for determining the index returns for these three stocks. Price Weighed Index $ 56.67 $1.94 HPR 20.00 15.00 15-Feb $ 16-Febs 100.00 55.00 B 50.00 $ 40.00 $ $ $ -8.33%...

Examine the two methods for determining the index returns for these three stocks. HPR 15-Feb $ 16-Feb $ A 20.00 15.00 $ $ B 50.00 $ 40.00 $ 100.00 55.00 Price Weighed Index $ 56.67 51.94 Value...

Requested to do an integrated summary of these paper by reflecting to the local (Malaysian) Corporate Financial Scenarios. Three views on stock markets and corporate behavior: Tobin, Veblen, and Marx...

I need assistance in completing the open ended portion that could be found on the last page of the pdf file. Part A most importantly is what I need assistance with, the data that needs to be...

Hello, please provide the excel formulas. ty 1 2 Spreadsheet Exercise: Problem 3.12 Peter Tanaka is interested in starting a stock portfolio. He has heard many financial reporters talk about the Dow...

1. The term excess-return refers to ______________. A. returns earned illegally by means of insider trading B. the difference between the rate of return earned and the risk-free rate C. the...

Hello, please help with answers for the questions attached as soon as possible. Thank you. FNB 100 Assessment 1. Bond prices are quoted in terms of which of the following? A. % of par value B. coupon...

Please complete the quiz before midnight. And show all working for the math problems. Thank you. FNB 100 Assessment 1. Bond prices are quoted in terms of which of the following? A. % of par value B....

1. Garden Tools Inc. has bonds, preferred stock, and common stocks outstanding. The number of securities outstanding, the current market price, and the required rate of return for these securities...

(a) What is the probability of finding an electron on the inter-nuclear axis if the electron occupies a molecular orbital? (b) For a homo-nuclear diatomic molecule, what similarities and differences...

plastic jar with lid powdered laundry detergent cooking grease or shortening Materials: water Procedure: 1. Fill the jar with water about half full. 2. Add some laundry detergent and shake the jar...

*5 Consider a machine producing drive shafts with a mean diameter of 6 cm and a standard deviation of 0.01 centimeters. To see if the process is in control, we take samples of size 10 and evaluate...

The current exchange rate of dollars to euros is $1.8/1.1. The risk free rate for dollars is r_u = 3%. The risk free rate for euros is r_u = 4%. The dollar denominated price of an option to purchase...