The following chart provides price (P) and number of shares outstanding (Q) data for stocks A,...

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Finance

The following chart provides price (P) and number of sharesoutstanding (Q) data for stocks A, B, and C at the end of year 0and at the end of year1.
P0 Q0 P1 Q1
A 45 100 50 100
B 60 150 50 150
C 28 200 35 200
What are the equal-, price-, and value-weighted returns on anindex comprised of A, B and C? Equal weighted return Price weightedreturn Value weighted return A. 1.5% B. 2.09% C. 6.48%

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4.3 Ratings (625 Votes)

Under Price weighted method we take the average of the prices in both the periods and then calculate the return between the two Stock P0 P1 A 45 50 B 60 50 C 28 35 Sum 456028 133 505035135 Count 3 3 Average See Answer

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The following chart provides price (P) and number of sharesoutstanding (Q) data for stocks A, B, and C at the end of year 0and at the end of year1.P0 Q0 P1 Q1A 45 100 50 100B 60 150 50 150C 28 200 35 200What are the equal-, price-, and value-weighted returns on anindex comprised of A, B and C? Equal weighted return Price weightedreturn Value weighted return A. 1.5% B. 2.09% C. 6.48%