The Paws Index is a price weighted stock index based on the 3 largest pet food manufacturers in the nation. The stock prices for the three stocks are $30, $15, and $50. The price of the last stock was just split 3 for 1 and the stock price was reduced from $60 to $20. What is the new divisor for a price weighted index? 1.86

The Paws Index is a price weighted stock index based on the 3 largest pet food manufacturers in the nation. The stock prices for the three stocks are $30, $15, and $50. The price of the last stock was just split 3 for 1 and the stock price was reduced from $60 to $20. What is the new divisor for a price weighted index? 1.86

Essentials of Business Analytics (MindTap Course List)

2nd Edition

ISBN:9781305627734

Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Chapter7: Linear Regression

Section: Chapter Questions

Problem 7P: The Dow Jones Industrial Average (DJIA) and the Standard Poors 500 (SP 500) indexes are used as...

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Ralph is constructing a price-weighted index. On March 1, 2XX1, he has the following stocks in the index: Company Share price # shares outstanding Walmart $42.6 26,000 Kmart $18.76 19,000 Venture $55.11 63,000 Macy’s $39.61 45,000 What is the price-weighted index on March 1, 2XX1? (Do not round intermediate calculations. Round your answers to 3 decimal places. (e.g., 32.167))
The EV Index is a price weighted stock index based on the 3 largest electric vehicle manufacturers in the nation. Consider these stocks in the following table. Pt represents price at time t, and Qt represents shares outstanding at time t. (Please pay close attention to stock split) P0 Q0 P1 Q1 P2 Q2 A 80 200 85 200 90 200 B 60 300 70 300 35 600 C 65 200 67 200 70 200 a. What is the divisor for the price weighted index in year 2?2.69 (sample answer: 2.55) b. What is the price weighted index at t=1? 64 (sample answer: 156.45) c. What is the price weighted index at t=2? 70.63(1sample answer: 56.45)
The following information relates to five stocks listed in five different sectors at A Securities Exchange .The return on treasury bills is 8% and the average return in the market has been found to be 13%. Estimated Return(%) Beta Williamson tea 12 0.7 Equity Bank 8.2 1 Home Afrika 20 1.2 Bamburi Cement 5 1.4 Nation Media Group 10 -0.4 Using the capital asset pricing model (CAPM) determine the Required Rate of Return (RRR) for each stock and state whether it is undervalued or overvalued
There are three stocks in a price-weighted index: A $100 B $20 C $60 a. What is the average value for the index? b. Assume stock A goes down by 25 percent and stock B goes up by 25 percent, and stock C remains the same. What is the new average value for the index? c. Explain why in part b the average changed with two stocks moving up and down by the same percentage amount.
A benchmark market value index is comprised of three stocks. Yesterday the three stocks were priced at $16, $26, and $55. The number of outstanding shares for each is 750,000 shares, 650,000 shares, and 350,000 shares, respectively. If the stock prices changed to $20, $24, and $57 today respectively, what is the 1-day rate of return on the index?
An equal-weighted index is composed of 3 stocks. Stock A is trading at $53, stock B at $75 and stock C at $81. One year later, stock A is now worth $41, stock B is $76, and stock C is $128. Neither of the 3 stocks have paid any dividends. The total return for this index is closest to: Question 6 options: A) 166.50% B) 12.24% C) 81.99%
Assume the Dow Jones Industrial Average index consisted of two stocks, POS andCLO prior to the end of trading hours yesterday. At the trading close, the ticker CLO isreplaced by LOG with stock price $55. Assume the firm (old ticker: CLO, new ticker:LOG)has no change in their fundamental value. Prices are shown in the table below. What is thenew divisor ??? Round your answer to three decimal places Please give a detailed explanation using formulas, not excel. A. 1.048B. 1.078C. 1.359D. 0.736E. 0.927F. 2.000
A value-weighted index consists of 3 stocks and stands at 6,000 at the beginning of the month. The prices, market capitalization, and free float of the stocks are as follows. Stock A: price 500, market cap. 2,5 trillion, and free float 20%. Stock B: price 300, market cap. 1,5 trillion, and free float 60%. Stock C: price 200, market cap. 4 trillion, and free float 15%. If by the end of the month, only stock C falls to 160, what will be the index a. 5.840 b. 5.640 c. 4.800 d. 5.400 Please answer this question ASAP, if write and upload the paper calculation really take a time, then just write the right multiple choice, Thank you
Based on five years of monthly data, you derive the following information forthe companies listed: Company SDi rm Padma 11.10% 0.82 Meghna 12.60% 0.63 Jamuna 6.60% 0.45 Karnafully 9.70% 0.70 SD on Market 7.60% 1.00 Compute the beta coefficient for each stock.
If the covariance between two stocks is 115% and the standard deviation of both stocks are 23% and -13% respectively, what is the correlation coefficient between the two stocks? If the correlation between two stocks is .49 and the standard deviation of both stocks are 39% and 12% respectively, what is the covariance (in percent) between the two stocks? Assume that a $2 million factory is insured and sustains a $700,000 loss. If pro rata coverage exists in which the primary insurer retains 76 percent of the coverage and the reinsurer provides the remaining coverage, how much with the reinsurer pay?
Based on five years of monthly data, you derive the following information forthe companies listed: Company SDi rm Padma 11.10% 0.82 Meghna 12.60% 0.63 Jamuna 6.60% 0.45 Karnafully 9.70% 0.70 SD on Market 7.60% 1.00 Plot the following estimated returns for the nest year on the SML and indicate which stocks are undervalued or overvalued.a. Padma – 22 percentb. Meghan – 17 percentc. Jamuna – 16 percentd. Karnafully – 12 percent.
On a particular day, there were 3300 stocks that advanced on the NYSE and 1200 that declined. The volume in advancing issues was 500000000 and the volume in declining issues was 200100000. The trin ratio is