What is the rate of return if you use price-weighted method


Assignment

Following table shows the price information for three stocks:

Stock

Price0

Quantity0

P1

Q1

A

$70

50

$85

50

B

10

150

12

150

C

100

30

50

60

1. What happened for stock C during this period?

2. Calculate the price-weighted index value at time 0 and at time 1 assume the divisor for time 1 is 2.35.

3. What is the rate of return if you use price-weighted method?

4. Calculate the market value-weighted index value at time 1.

Solution Preview :

Prepared by a verified Expert
Microeconomics: What is the rate of return if you use price-weighted method
Reference No:- TGS01804516

Now Priced at $15 (50% Discount)

Recommended (94%)

Rated (4.6/5)

2015 ┬ęTutorsGlobe All rights reserved. TutorsGlobe Rated 4.8/5 based on 34139 reviews.