Question: Please answer and explain 1) Consider the information in the table below. Weight in Weight in 12/31/17 - 10/31/2018 10/31/2018 Price-Weighted Market-Value 10/31/2018 Stock Price

Please answer and explain

1) Consider the information in the table below. Weight in Weight in 12/31/17 - 10/31/2018 10/31/2018 Price-Weighted Market-Value 10/31/2018 Stock Price Total Market Cap (mill) Index Weighted Index HPR PEP Pepsico, Inc. 112.38 158,632.01 -3.938 GOOGL Alphabet Inc. Class A 1,090.58 326,051.79 3.530 LLY Eli Lilly and Company 108.44 116,463.26 30.941 XOM Exxon Mobil Corporation 79.68 337,349.98 -1.792 Totals 1,391.08 938,497.04 a) Calculate the weight of each stock in a price-weighted index (portfolio) and market-value-weighted index (portfolio). Round your weights to xx.yyy%. Show your work here but put the weights in the table above. b) Calculate the YTD HPR (12/31/2017 to 10/31/2018) of ONE of these portfolios. Round to xx.yyyo or .xxyyy c) Calculate the value of a price-weighted index of these 4 stocks, assuming no prior changes to the index divisor. Round to xxx.yyyy d) Suppose now we replace Eli Lilly with Merck, and its price on 10/31/2018 was $73.61. Calculate the new divisor for the price-weighted index

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!

I understand we cannot post multiple questions but these 6 are under the same question on my assignment and i need help Vanguard Information Technology Index Fund Sector fund | AdmiralTM Shares Risk...

help mi with my questions 21. There are three assets, A, B and C, where A is the market portfolio and C is the risk-free asset. The return on the market has a mean of 12% and a standard deviation of...

Your task is to create an index, using Excel, from the 30 stocks in the table found in the attached excel spreadsheet. Using the information presented in the following table, answer the following set...

Parmacheenee Belle's entire common stock portfolio ($500,000) is allotted to an index fund tracking the Standard & Poors 500 index. The expected rate of return on the index is 9.5% and the standard...

my question is why question 34's solution shows that a contract multiplier is $500? for questions 35 is why the change in yields is 0.01%. for question 36, how to get 82.8? why the change in yield is...

please calculate and answer the questions below. Formulas for Excell needed as well. D G H K M Information from McCormick Your task is to make an estimate of McCormick & Company's Weighted Average...

please fill out the tables bellow and calculate all the questions. what exactly is not clear? i sent many pictures. its clear when i open it. Projects Workbook Home View Insert Page Layout Formulas...

Hi again, I was hoping you can help with this investment management assignment. I am attaching the word document. It is 4 problems about asset management. Thank you for your help! Fin 6310 1. Assume...

Detailed Explanation for Question 32 to 36 For question 32, how to get contract multiplier of 500? For question 36, why the change in the portfolio yield is 0.01%, and how to get $82.8? 21 Student:...

I need your help with this: Can you please quote from the attached chapters / resource if possible? Corporations often use different costs of capital for different operating divisions. Using an...

What is the maturity value of a 6-year term deposit of $9785.88 at 6.4% compounded annually? How much interest did the deposit earn?

It is frequently argued that for empowerment to work, managers must let go of control and learn to live with decisions that are made by their subordinates. Evaluate this argument.

Jill works for C&B Law Firm in NYC . C&B pays ( reimburses ) Jill $ 3 3 0 per month for parking at work. How much does Jill need to include per month in her gross income related to the parking...

Producing dich unit of good Y, In terms et goad N, is units of X. Thereers not the comparative advantage in the production of he be comparethe adoptage in the production of good % (Clint Be pire to...