Solution-Calculate the rate of return on a price weighted

Calculate the rate of return on a price weighted average

Assignment Help Finance Basics

Reference no: EM13859754

You are provided with the following information on four shares of stock. Assume that the base year is Dec 2000 and all splits take place on this date. That is after close of trading on December 31, 2000. Stock A and B have a 2 for 1 split at the end of trading on December 31, 2000. Use this information to answer the questions listed below.

	31-Dec-00	31-Dec-00	31-Dec-01	31-Dec-01	31-Dec-00	Dec-01	Split
Stock	Price	Shares	Price	Shares	MV	MV
A	$ 175.00	10000	$ 50.00	20000	$1,750,000	$1,000,000	2
B	$ 50.00	4000	$ 35.00	8000	$200,000	$280,000	2
C	$ 20.00	15000	$ 30.00	15000	$300,000	$450,000	1
D	$ 140.00	20000	$ 130.00	20000	$2,800,000	$2,600,000	1

1. Calculate the rate of return on a price weighted average of the four stocks for the period December 31, 2000 to December 31, 2001. Remember to adjust for changes in the divisor.

2. Calculate the rate of return on a market value weighted index of the four stocks for the period December 31, 2000 to December 31, 2001.

3. Calculate the rate of return on an equally weighted index of the four stocks for the period December 31, 2000 to December 31, 2001.

Reference no: EM13859754

Questions Cloud

How has technology changed the way : How has technology changed the way in which the manager defines how tasks are performed and completed within the organizational structure? What happens to structure when the walls are missing? How do the tasks get complete and by whom?

How would you incorporate these into your working life : In a brief 1-2 paragraph reflection, explain why a professional organization had a policy such as this. How would you incorporate these into your working life

Create a complete hi-fidelity prototype using fluid-ui : Create an application that demonstrates competence at using lists and create a sketch, and refine it further to create a hi-fi prototype. Undertake a heuristic usability on this hi-fi prototype.

How you might improve the jobs of your employees : You are the sole supervisor of this large group. Using the job characteristics model (JCM), describe how you might improve the jobs of your employees in order to improve motivation, performance, and job satisfaction

Calculate the rate of return on a price weighted average : Calculate the rate of return on a price weighted average of the four stocks for the period December 31, 2000 to December 31, 2001. Remember to adjust for changes in the divisor.

What is appreciative inquiry : What is appreciative inquiry

Assembly language program to accept positive integer values : Write a 68000 assembly language program to accept positive integer values m, b, and x from the keyboard, compute the value of f using the formula

Audit of bullseye - comprehensive plan : Create a comprehensive plan, in essay form, for your audit of Bullseye, from establishing the scope of the audit through issuing the final report - Bullseye has been a client for several years, this is an ongoing audit, so you only need to be con..

What would be the pros and cons of developing a business : What would be the pros and cons of developing a business plan for your new venture?

User Account

All Pages

Calculate the rate of return on a price weighted average

Reference no: EM13859754

Reference no: EM13859754

Questions Cloud

Reviews

Write a Review

Finance Basics Questions & Answers

Financial reporting and analysis

A report on financial accounting

Describe the types of financial ratios

Differences between sole proprietorship and corporation

Prepare a cash budget statement

What are the implied interest rates

State pricing theory and no-arbitrage pricing theory

Small business administration

Effect of financial leverage

Evaluate the basis for the payment to the lender

Importance of opps, ipps, mpfs and dmepos

Time value of money

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT