Plz. Solve both Which of the following regarding the stock indices is true?O A. The divisor for Dow Jones Industrial Average is less than 30.O B. Apple Stock's Stock 4-1 Split increases the weight of AAPL in the Dow Jones Industrial Average Index.OC. The return on Dow Jones Industrial Average is affected equally by changes in low; and high-priced stocks.O D. Apple Stock's Stock 4-1 Split reduces the weight of AAPL in the S&P 500 Index.Which of the following is correct about the U.S. dollar LIBOR?O A. USD LIBOR rates have been published by the Federal Reserve Bank of New York.O B. LIBOR rates are based on U.S. repo market trading with Treasury securities as collateral.O C. The underlying market of LIBOR has less liquiidty than the underlying market of SOFRO U LIBOR rates reflect the cost of borrowing by banks as well as non-bank financial institution:O E. LIBOR rates are more volatile than SOFR.

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Which of the following regarding the stock indices is true? O A. The divisor for Dow Jones Industrial Average is less than 30. O B. Apple Stock's Stock 4-1 Split increases the weight of AAPL in the Dow Jones Industrial Average Index. O. The return on Dow Jones Industrial Average is affected equally by changes in low; and high-priced stocks. O D. Apple Stock's Stock 4-1 Split reduces the weight of AAPL in the S&P 500 Index.

Which of the following regarding the stock indices is true? O A. The divisor for Dow Jones Industrial Average is less than 30. O B. Apple Stock's Stock 4-1 Split increases the weight of AAPL in the Dow Jones Industrial Average Index. O. The return on Dow Jones Industrial Average is affected equally by changes in low; and high-priced stocks. O D. Apple Stock's Stock 4-1 Split reduces the weight of AAPL in the S&P 500 Index.

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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The Dow Jones Industrial Average (DJIA) and the Standard Poors 500 (SP 500) indexes are used as measures of overall movement in the stock market The DJIA is based on the price movements of 30 large companies: the SP 500 is an index composed of 500 stocks. Some say the SP 500 is a better measure of stock market performance because it is broader based. The closing price for the DJIA and the SP 500 for 15 weeks, beginning with January 6, 2012, follow (Barrons web site, April 17, 2012). a. Develop a scatter chart for these data with DJIA as the independent variable. What does the scatter chart indicate about the relationship between DJIA and SP 500? b. Develop an estimated regression equation showing how SP 500 is related to DJIA. What is the estimated regression model? c. What is the 95% confidence interval for the regression parameter 1? Based on this interval, what conclusion can you make about the hypotheses that the regression parameter 1 is equal to zero? d. What is the 95% confidence interval for the regression parameter 0? Based on this interval, what conclusion can you make about the hypotheses that the regression parameter 0 is equal to zero? e. How much of the variation in the sample values of SP 500 does the model estimated in part (b) explain? f. Suppose that the closing price for the DJIA is 13,500. Estimate the closing price for the SP 500. g. Should we be concerned that the DJIA value of 13,500 used to predict the SP 500 value in part (f) is beyond the range of the DJIA used to develop the estimated regression equation?
Use the data below to determine which of the statements is most accurate? a) For a given percentage change in stock price, company Y will have less impact on the market-cap weighted index as company Z. b) A 100% increase in the stock price of company X will have a smaller impact on the price-weighted index than a 100% increase in the stock price of company Z. c) For a given percentage change in the stock price, company X will have a greater impact on the market-cap weighted index than companies Y & Z.
When technical analysts say a stock has good “relative strength,” they mean:a. The ratio of the price of the stock to a market or industry index has trended upward.b. The recent trading volume in the stock has exceeded the normal trading volume.c. The total return on the stock has exceeded the total return on T-bills.d. The stock has performed well recently compared to its past performance.
Two indices contain exactly the same stocks; one is a market-capitalization-weighted index that increased by 11%, whereas the other is an equal-weighted index that increased by 8% over the same period. This is explained by which of the following? There were a large number of stock splits over the period. There were a small number of stock splits over the period. Large-capitalization stocks underperformed small-capitalization stocks. Large and small capitalization stocks performed about the same over the period. Large-capitalization stocks outperformed small-capitalization stocks
Which of the following statements is correct? Multiple Choice Penny stocks are the stocks of small companies that are priced below $1 per share. Restricted stocks are shares of stock issued to executives that have limitations on voting rights. The capital market line graphs the relationship between return and risk (beta). All of these choices are correct.
Suppose that the index model for stocks A and B is estimated from excess returns with the following results: RA = 3.8% + 1.25RM + eA RB = –1.8% + 1.60RM + eB σM = 18%; R-squareA = 0.24; R-squareB = 0.18 What are the covariance and correlation coefficient between the two stocks? (Do not round intermediate calculations. Calculate using numbers in decimal form, not percentages. Round your answers to 4 decimal places.)
According to the explanation of the attached picture in my textbook is that " price-weighted index (e.g., Dow Jones) is computed by summing the prices of the individual stocks, then dividing by a divisor to determine the base index value. The divisor, such as 100, relates the starting value and is adjusted as stocks split or composition of the index is changed" please illustrate the calculation of stock market indexs and market value-weighted index correlatively with the table in picture and the explanation below the table to make me understand why divisor is 100, what's the core concept in calculating both price-weighted index and market value-weighted index in the table
You were analyzing a stock and came up with the following probability distribution of the stock returns. What is the coefficient of variation on the company's stock?Round your answer to two decimal places. For example, if your answer is $345.6671 round as 345.67 and if your answer is .05718 or 5.7182% round as 5.72. State of the Economy Probability of State Occurring Stock's Expected Return Boom 30.00% 20.60% Normal 51.00% 15.65% Recession 19.00% 7.95% A. 0.2753 B. 0.1927 C. 0.3166 D. 0.3304 E. 0.2478
You were analyzing a stock and came up with the following probability distribution of the stock returns. What is the coefficient of variation on the company's stock?Round your answer to two decimal places. For example, if your answer is $345.6671 round as 345.67 and if your answer is .05718 or 5.7182% round as 5.72. State of the Economy Probability of State Occurring Stock's Expected Return Boom 25.00% 24.15% Normal 46.00% 17.40% Recession 29.00% 6.20% Group of answer choices
Considering the following stock return information for Goya Foods and Bloomingdales, State of Economy Return onGoya Foods Return onBloomingdales Bear .108 −.051 Normal .109 .154 Bull .079 .239 If each state of the economy is equally likely to occur, the covariance between the two stocks is: a. -0.014820 b. 0.705700 c. -0.013900 d. 0.000190 e. -0.001195 NOTE: Indicate a negative answer with a minus sign.
You were analyzing a stock and came up with the following probability distribution of the stock returns. What is the coefficient of variation on the company's stock?Round your answer to two decimal places. For example, if your answer is $345.6671 round as 345.67 and if your answer is .05718 or 5.7182% round as 5.72. State of the Economy Probability of State Occurring Stock's Expected Return Boom 35.00% 26.80% Normal 46.00% 13.95% Recession 19.00% 7.55%
Today, a firm has a stock price of $14.26 and an EPS of $1.15. Its close competitor has an EPS of $0.48. What would be the expected price of the competitor's stock if estimated using the method of comparables? Do not include a dollar sign in your answer.