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LOS a, (Part 2): Compute a price-weighted, a value-weighted, and an unweighted index series for three stocks.
Q1. An index was recently begun with the following two stocks:
- Company A – 50 shares valued at $2 each.
- Company B – 10 shares valued at $10 each.
Given that the value-weighted index was originally set at 100 and Company A's stock is currently selling for $4 per share while Company B’s stock is still at $10 per share, what is the current value of the price-weighted index and the value-weighted index?
Price-weighted Value-weighted
A) 8 150
B) 7 150
C) 7 300
Q2. What is the price-weighted index of the following three stocks?
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As of December 31, 2001 |
|
Company |
Stock Price |
Shares Outstanding |
|
A |
$50 |
10,000 |
|
B |
$35 |
20,000 |
|
C |
$110 |
30,000 |
A) 65.
B) 75.
C) 80.
Q3. What is the market value-weighted index of the following three stocks assuming the beginning index value is 100 and a base value of $150,000?
|
As of December 31 |
|
Company |
Stock Price |
Shares Outstanding |
|
X |
$1 |
5,000 |
|
Y |
$20 |
2,500 |
|
Z |
$60 |
1,000 |
A) 30.
B) 100.
C) 77.
Q4. Use the data below to determine which of the statements is most accurate?
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As of December 31 |
|
Company |
Stock Price |
Shares Outstanding |
|
A |
$25 |
20,000 |
|
B |
$50 |
20,000 |
|
C |
$100 |
10,000 |
A) For a given percentage change in the stock price, Company A will have a greater impact on the market-value weighted index than Companies B or C.
B) A 100% increase in the stock price of Company A will have a smaller impact on the price-weighted index than a 100% increase in the stock price of Company C.
C) For a given percentage change in the stock price, Company B will have less of an impact on the market-value weighted index as Company C.
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发表于 2009-3-2 13:00
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