1- If you want to invest $100,000 in a price-weighted portfolio index with these stocks, how much do you purchase of each stock? What is the initial value of the index?
2- Suppose before the next day you want to replace Upton Partners with Marshes Ltd. which is trading at $10.78. What is the new index divisor?
3- If you want to invest $100,000 in a value-weighted portfolio index with the three original stocks, how much do you purchase of each stock? What is the divisor which makes the initial value of the index 1,000? Suppose the new prices for the stocks are the following at the end of day 2: Nick Up Inc. 10.78 10,000,000 Brennan Co. 93.71 20,000,000 Upton Partners 51.18 5,000,000
4- What is the index value at the end of day 2?