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

  Kingsley products ltd is using a model 400 shaping machine

kingsley products ltd. is using a model 400 shaping machine to make one of its products. the company is expectingnbsp

  Small motors inc which is currently operating at full

small motors inc which is currently operating at full capacity has sales of 29000 current assets of 1600 current

  Which loan has the lowest effective annual rate

Local Bank down the street is also offering a loan at 10% where the payments are made quarterly. Which loan has the lowest effective annual rate?

  What amount will be shown as a short-term gain

In 2009, Juanita sold stock considered short-term for a gain of $875. and stock considered long term for a loss of $2,400. She also had a $2,000 short term loss caryover from 2008 and a $240. long-term loss carryover from 2008.

  Decision making among buy and lease

Decision making among buy and lease and Your landscaping company can lease a truck for $8000 a year (paid at year end) for 6 years

  Hw does this compare with the values from

mitsushama systems buys new development machines for yen150000 each and these are used within the company for 6 years.

  What is the tax effect of the sale of the existing asset

The new machine will be depreciated under MACRS using a five-year recovery period. The firm has a 12 percent cost of capital and a 40 percent tax on ordinary income and capital gains.

  What was the stock price following the split

Whited Products recently completed a 4-for-1 stock split. Prior to the split, its stock sold for $120 per share. If the firm's total market value increased by 5% as a result of increased liquidity caused by the split, what was the stock price foll..

  Find the yield-to-call on a semiannual coupon bond

Find the Yield-to-Call on a Semiannual Coupon Bond with a Price of $1085, a Face Value of $1000, a Call Price of $1067.5, a Coupon Rate of 6.75%, 18 years remaining until Maturity, and 11 years remaining until the Call Date.

  Here is a rubric for your final paper it should be 5-7

here is a rubric for your final paper. it should be 5-7 pages long not counting titles abstract references table of

  If comparable yields are 75 percent what must be the price

question a firm has the following preferred stocks outstandingbullpfd a 32 annual dividend 1000 par value no

  What arbitrage opportunity do these figures present

Suppose that 3-month interest rates (annualized) in Japan and the United States are 7% and 9%, respectively. if the spot rate is ¥142:$1 and the 90-day forward rate is ¥139:$1.

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