On December 31, 2019, you decided to look at a price-weighted index of the four stocks known
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Question:
a) Calculate the return on Alphabet (GOOG) from 12/31/2019 to 12/31/2020.
b) Calculate the return on a price-weighted index of these four stocks from 12/31/2019 to 12/31/2020.
c) After reading a series of posts on Reddit, you decide to update your price-weighted index by replacing Alphabet (GOOG) with GameStop (GME). As of 12/31/20, GameStop had 70m shares outstanding and a closing stock price of $19 per share. What is the new divisor that would be required in your price-weighted index if you replace Alphabet with GameStop after the close of trading on 12/31/20?
Related Book For
Financial Reporting Financial Statement Analysis and Valuation a strategic perspective
ISBN: 978-1337614689
9th edition
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
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