Question (1): The table below presents information about 4 stocks. Price March t=0 Stock Quantity March t0 Price April Q

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Question 1 The Table Below Presents Information About 4 Stocks Price March T 0 Stock Quantity March T0 Price April Q 1 (90.29 KiB) Viewed 79 times

Question (1): The table below presents information about 4 stocks. Price March t=0 Stock Quantity March t0 Price April Quantity April t=1 Price May t=2 Quantity May t=2 30 Price June t=3 $35 Quantity June t=3 30 A $20 30 $20 30 $30 B $175 40 $180 40 X Y X Y C $69 50 $53 50 $53 50 $50 50 200 $70 200 $75 200 D $54 200 $66 Note: numbers are in millions of $ A. Calculate the rate of return for a market value weighted index for the first period (March till April). Among the 4 stocks, which stock's price change can affect the stock index the most? Why? B. Calculate the value of a price weighted index for April C. In May, stock B splits 4-for-1. Calculate the price of a price weighted index in May (Taking the stock split into account). Calculate the new divisor after this split. D. What is the rate of return on a price weighted index for the second period (April to May)? E. Calculate the rate of return for an equally weighted index for the last period (May to June) (X and Y are similar in t=2 and t=3).