Consider the three stocks in the following table. P+ represents price at time t, and 0 represents shares outstanding at time t. Stock Csplits two-for-one in the last period.BCPe9858116Divisor%0100200200 126P110353Rate of returnRequired:a. Calculate the rate of return on a price-weighted index of the three stocks for the first period (t=0 to t= 1). (Do not roundintermediate calculations. Round your answer to 2 decimal places.)Rate of return%01100200200P₂103.5363b. What will be the divisor for the price-weighted index in year 2? (Do not round intermediate calculations. Round your answer to 2decimal places.)92100200400%c. Calculate the rate of return of the price-weighted index for the second period (t-1 to t=2).

Answered: Image /qna-images/answer/ad8c9c08-ff0e-480f-8306-2b5b6a5d145b.jpg

Answered: Consider the three stocks in the…

Intermediate Algebra

19th Edition

ISBN:9780998625720

Author:Lynn Marecek

Publisher:Lynn Marecek

Chapter12: Sequences, Series And Binomial Theorem

Section12.3: Geometric Sequences And Series

Problem 12.58TI: What is the total effect on the economy of a government tax rebate of $500 to each household in...

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What is the total effect on the economy of a government tax rebate of $500 to each household in order to stimulate the economy if each household will spend of the rebate in goods and services?
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Suppose that an investment of $500 yields returns of $100, $200, and $300 at the end of the first, second, and third months, respectively. Determine the internal rate of return on this investment.
suppose the rate of return for a particular stock during the past two years was 10% for one of the years and 30% for the other year. Compute the geometric rate of return per year. (note: A rate of return of 10% is recorded as 0.10, and a rate of return of 30% is recorded as 0.30)
Suppose that an account is governed by a quadratic accumulation function a(t) =at2 + 0.01t + b and i1 = 2%. Find a, b, the effective rate of interest on the third year, andthe effective rate of discount on the fourth year.
A.F.D.C. was intended to provide mothers with enough to get by — barely — while raising their children. In 1970 three-person families on A.F.D.C. received, on average, $194 a month. Adjusting for inflation, that’s the equivalent of around $15,000 a year today, compared with the $6,000 a family with two children over age 6 ($7,200 if they’re under 6) will receive under the new plan. In 1970, an A.F.D.C. family of three received about 25 percent of median income for three-person families — hardly a generous allowance, but maybe, just, enough to live on. The new American Rescue Plan will give a single parent of two children less than 7 percent of median income c. What is median family income today (2021)? How much will the new relief bill give to a single parent with two children annually?
From the graph below relating the holding-period returns for Aram Inc. (in the Y-axis) to the S&P 500 Index (in the X-axis), estimate the firm's beta. Aram's beta is estimated to be about?
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Match the investment information on the left to the amount in the account after t years on the right. 1. A=?P=$3,800e=2.718r=2.95%⇒0.0295t=3 years 2. A=?P=$4,000e=2.718r=2.25%⇒0.0225t=2.5 years 3. A=?P=$4,200e=2.718r=3%⇒0.03t=2.25 years 4. A=?P=$3,700e=2.718r=3.25%⇒0.0325t=3.25 years a. A≈$4,151.59 b. A≈$4,231.42 c. A≈$4,493.26 d. A≈$4,112.15
t Date Rate 1 1-Apr-04 1.8564 2 2-Apr-04 1.8293 3 5-Apr-04 1.8140 4 6-Apr-04 1.8374 5 7-Apr-04 1.8410 6 8-Apr-04 1.8325 7 9-Apr-04 1.8322 8 12-Apr-04 1.8358 9 13-Apr-04 1.8160 10 14-Apr-04 1.7902 11 15-Apr-04 1.7785 12 16-Apr-04 1.8004 13 19-Apr-04 1.8055 14 20-Apr-04 1.7914 15 21-Apr-04 1.7720 16 22-Apr-04 1.7684 17 23-Apr-04 1.7674 18 26-Apr-04 1.7857 19 27-Apr-04 1.7925 20 28-Apr-04 1.7720 21 29-Apr-04 1.7751 22 30-Apr-04 1.7744 23 3-May-04 1.7720 24 4-May-04 1.7907 25 5-May-04 1.7932 26 6-May-04 1.7941 27 7-May-04 1.7842 28 10-May-04 1.7723 29 11-May-04 1.7544 30 12-May-04 1.7743 31 13-May-04 1.7584 32 14-May-04 1.7572 33 17-May-04 1.7695 34 18-May-04 1.7695 35 19-May-04 1.7827 36 20-May-04 1.7710 37 21-May-04 1.7880 38 24-May-04 1.7908 39 25-May-04 1.8135 40 26-May-04 1.8142 41 27-May-04 1.8369 42 28-May-04 1.8330 (a) Make a line chart and fit an m-period moving average to the exchange rate…
Find the present value of a continuous income stream of $18,000 per year for 20 years at 2.8% continuous interest.

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