Problem 2. (20 points) You are given the following information for three stocks: ...

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Accounting

Problem 2. (20 points) You are given the following information for three stocks:

Stock

Price on 1/20/2021

Price on 2/20/2021

Shares (million)

A

$20

$25

15

B

$35

$15

30

C

$90

$150

1

A) Construct a price-weighted index value for the three stocks on 1/20 and 2/20. What was the rate of return based on these numbers?

B) What is the return on a value-weighted portfolio from 1/20 to 2/20?

C) What is the return on an equal-weighted portfolio from 1/20 to 2/20?

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