What is the percentage change in each aggregate market

Assignment Help Finance Basics
Reference no: EM13524956

5. You are given the following information concerning four stocks:

Stock A B C D
Shares outstanding 1,000 300 2,000 400
Price 20X0 50 30 20 60
20X1 50 30 40 60
20X2 50 60 20 60

Using 20X0 as the base year, construct three aggregate measures of the market that simulate the Dow Jones Industrial Average, the S & P 500 stock index, and the Value Line stock index (i.e., a simple average, a value-weighted average, and a geometric average).

a) What is the percentage change in each aggregate market measure form 20X0 to 20X1, and 20X0 to 20X2? Why are the results different even though only one stock's price changed and in each case the price that changed doubled?
b) If you were managing funds and wanted a source to compare your results, which market measure would you prefer to use in 20X2?

Reference no: EM13524956

Questions Cloud

Determine how many meters are you from the ship : You see condensed steam expelled from a ship's whistle 2.50 s before you hear the sound. how many meters are you from the ship
Explain what are the most likely cathode products : Based on their reduction potentials, what are the most likely cathode products in the electrolysis of an aqueous solution containing 1M LiCl, 1M FeCl2 and 1M CoCl2
What is the direction of the velocity of boat : As two boats approach the marina, the velocity of boat 1 relative to boat 2 is 2.13 m/s in a direction 40.3° east of north. What is the direction of the velocity of boat 2
Determine the magnitude of the charge on the balls : Two small plastic balls hang from threads of negligible mass. Each ball has a mass of 0.54 g and a charge of magnitude q. Find the magnitude of the charge on the balls
What is the percentage change in each aggregate market : a) What is the percentage change in each aggregate market measure form 20X0 to 20X1, and 20X0 to 20X2? Why are the results different even though only one stock's price changed and in each case the price that changed doubled?
Direct-off method of accounting for uncollectible account : Olympic Supply company uses the direct-off method of accounting for uncollectible account - This account was written off on November 30, Memorandum 89 and Receipt 277.
How to calculate the required quantity of reagent : Describe the preparation of 12 mL of a 0.050 M solution of each of the halogens, using the reactions in the preceding question. Available to you are solid Ca(OCl)2
Prepare entries to reflect correct land : Prepare entries to reflect correct land, building, and depreciation accounts at December 31, 2011 - show the proper presentation of land, building, and depreciation on the balance sheet at December 31, 2011.
Why do firms like southwest hedge : 1. Why do firms like Southwest hedge? What are the benefits of hedging? (Suggestion: refer to Carter, Rogers and Simkins (2004) for assistance in answering this question).

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the monthly annuity payment under this schedule

You will make monthly payments with a 20-year payment schedule. What is the monthly annuity payment under this schedule.

  What is the yield to maturity

A $1000 face value bond with six years to maturity and a twelve percent semiannual coupon currently sells for $950. What is the yield to maturity?

  Explain current market price of bond

Explain Current market price of bond and What is the current market price of the bond

  Fuel cost represents about 35 of cost of operation and is

we would need to discuss airline hedging practices derivatives and risk management options. you have been hired by

  A company wants to have 40000 at the end of a five-year

a company wants to have 40000 at the end of a five-year period through investment of a single sum now. how much needs

  Which one of the following is a direct bankruptcy cost

Which one of the following is a direct bankruptcy cost?

  What happens to the supply and demand for money and the

what happens to the supply and demand for money and the price interest rates and the quantity of money if there is make

  Management anticipates an increased working capital need of

chips home brew whiskey management forecasts that if the firm sells each bottle of snake-bite for 20 then the demand

  Make of statement of stockholders'' equity

Make of statement of stockholders' equity and A company had the following balances in its stockholders' equity accounts at December

  What is the operating leverage effect and what causes it

what is the operating leverage effect and what causes it? what are the potential benefits and negative consequences of

  Set of pro forma financial statements

If you created a set of pro forma financial statements for 2005 and found that projected Total Assets exceeded projected Total Liabilities and Equity through $11,250, you would know that:

  What is the current value of apis common stock

Given this scenario, what is the current value of API's common stock? If the current market price is $48.00 per share, should you purchase this stock.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd