Question: Show all work. Label and dearly explain vour answer. This is very important. 1) You must explain how you arrived at your answer in order

Show all work. Label and dearly explain vour answer. This is very important. 1) You must explain how you arrived at your answer in order to get full credit. 2) If you do show your work, and your answer is wrong, you can still earn a substantial amount of credit depending on how serious the error is. 3) If your answer is wrong, and you don't show your work, you will get a zero. The following chart shows the prices for five companies on Jan 15t of 2022, 2023 and 2024: bradorUimited | 62|76 | 68 | Malamute Manufacturing | 111 | 112 | 124 | T AwAuomonve] 90 [ 9 | iz a) Suppose thatonJan 1, 2022, the K9 stock index consists of four companies: Labrador Limited, Malamute Manufacturing, Collie Corporation and Akita Automotive. Further, suppose the K9 index is price weighted, and that the Jan 1, 2022 divisor is 0.565. Calculate the K9 indexonJan 1, 2022. b) Now suppose that, on Jan 1, 2023, Akita Automobile was removed from the index, and Dalmatian Designs was added to the index. Calculate the new divisor. c) Now (after the replacement in part b), calculate the value of the K9 index in 2024. d) What was the rate of return on the K9 index for 2022, before the replacement (from Jan1,2022 to Jan 1, 2023)? e) What was the rate of return on the K9 index for 2023, after the replacement (from Jan1,2023 toJan 1, 2024)
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
