Compute a price-weighted stock price index

Assignment Help Business Economics
Reference no: EM131173925

Consider the following information on the stock market in a small economy. Company Shares Outstanding Price, beginning of year Price, end of year 1 100 $120 $115 2 1000 $22 $25 3 10,000 $10 $8 Instructions: Round your answers to 1 decimal place. a. Compute a price-weighted stock price index for the beginning of the year and the end of the year. What is the percentage change? The percentage change is . b. Compute a value-weighted stock price index for the beginning of the year and the end of the year. What is the percentage change? The percentage change is .

Reference no: EM131173925

Questions Cloud

Consider game in which coin will be flipped three times : Consider a game in which a coin will be flipped three times. For each heads you will be paid $100. Assume that the coin comes up heads with probability 4/5. Construct a table of the possibilities and probabilities in this game. Possibilities Probabil..
In the competitive market for hamburgers : Assume that hotdogs and hamburgers are substitute goods. In the competitive market for hamburgers, there is an increase in the price of hotdogs (due to a decrease in the supply of hotdogs), and an increase in the cost of beef, an input used in produc..
Assume that hotdogs and hamburgers are substitute goods : Assume that hotdogs and hamburgers are substitute goods. In the competitive market for hamburgers, there is an increase in the price of hotdogs (due to a decrease in the supply of hotdogs), and an increase in the cost of beef, an input used in produc..
Compute the price you expect to receive for the loan : You are an officer of a commercial bank and wish to sell a car loan that the bank owns as an asset to another bank. Using the following equation, compute the price you expect to receive for the loan if the annual interest rate is 6 percent, the car p..
Compute a price-weighted stock price index : Consider the following information on the stock market in a small economy. Company Shares Outstanding Price, beginning of year Price, end of year 1 100 $120 $115 2 1000 $22 $25 3 10,000 $10 $8 Instructions: Round your answers to 1 decimal place. Comp..
Bank account currently pays interest at rate : A bank account currently pays interest at a rate of 3% per year. The current inflation rate is 2% per year. If I invest some money in the bank account, then what is the real interest rate that I am earning? If I decide to withdraw the entire balance ..
Present worth analysis over five-year planning horizon : EmKay Carriers is considering the purchase of a new truck to replace one of its aging trucks. The current truck has a remaining life of 5 years and it is expected to have a salvage value of $25,000 at the end of its useful life. Operating and mainten..
Risk neutral insurance company offers fire insurance policy : A risk averse individual with a wealth of 156,000 and utility function U(x) = sqrt(x) is considering whether to purchase fire insurance for their home. The probability of a fire is 0.03. Repairing the damage from a fire costs 96,000. A risk neutral i..
Average revenue curve and the marginal revenue curve : In a monopoly, the seller has all the market power. What does that imply about the demand and supply curve that the monopolist faces? In perfect competition P(Q)=AR=MR. Under what circumstances will a monopolist also have a demand curve that overlaps..

Reviews

Write a Review

Business Economics Questions & Answers

  Market structure would act counter-veiling power to cartels

What is the cartel and what prerequisites are required for a cartel to be successful? How do these prerequisites apply to labor unions, OPEC, NCAA, AMA(American Medical Association), and the ABA(American Bar Association)? Do college accredited agenci..

  Based on the current events in our economy

Based on the current events in our economy, please keep this in mind. When interest rates are held more or less at a constant rate and price risk remains stable, financial leverage does not greatly impact changes is stock return at the market level. ..

  What is meant by minimum cash reserve requirements

what is meant by the minimum cash reserve requirements referred to in this clip? b) what terminology do economics use to refer to the process described in this clip?

  Health insurance and other goods are normal goods

Suppose you decide each month how much of your disposable income to spend on health insurance and on other goods. Suppose that both “health insurance” and “other goods” are normal goods. Each unit of health insurance costs $10, and your monthly incom..

  You are a manager in a perfectly competitive market the

you are a manager in a perfectly competitive market. the price in your market is 45. your total cost curve is cq 10

  General pattern of the us income distribution

What s the general pattern of the US income distribution over the last century. Explain about the timing of the changes.

  Accounting profit from farming an additional year

He projects that his costs also revenue will be similar this year if he continues farming. Illustrate what is Bowen's accounting profit from farming an additional year.

  Utilizing social media to deliver advertising messages

A benefit of utilizing social media to deliver advertising messages is ____________.

  Qa manufacturer of electronic products has just developed a

q.a manufacturer of electronic products has just developed a handheld computer. following is the cost schedule for

  Assume that the default probability for a company

Assume that the default probability for a company in a year, conditional on no earlier defaults is X and the recovery rate is R. The risk-free interest rate is 5% per annum. Default always occur half way through a year. The spread for a five-year pla..

  What is the corporate average fuel economy program

What is the Corporate Average Fuel Economy (CAFE) program? What are the benefits of having CAFE standards? What are its limitations? Why is the program popular despite the limitations?

  How about reverse that is exporting little but importing lot

If a nation exported much of its output but imported little, would it be better or worse off? How about the reverse; that is, exporting little but importing a lot?

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