Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. v the following three defense stocks are to be

v The following three defense stocks are to be combined into...

80.2K

Verified Solution

Question

Finance

v
image
The following three defense stocks are to be combined into a stock index in January 2019 (perhaps a portfolio manager believes these stocks are an appropriate benchmark for his or her performance). Assume the index is scaled by a factor of 10 million that is, if the total value of all firms in the market is $5 bilion, the Index would be quoted as 500 Price Shares (millions) 1/1/19 1/1/20 1/1/21 Douglas McDonnell $ 94 $ 97 $111 Dynamics General 450 36 31 International Rockwell 350 65 54 68 210 45 a. Calculate the initial value of the Index If a value-weighting scheme is used (Round your answer to 2 decimal places.) Index value b. What is the rate of return on this index for the year ending December 31, 2019? For the year ending December 31, 2020? (A negative value should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) 2019 rotum 2020 return

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Geometry
1.2K views

. Graph by hand (upload photo) the function and identify the following:o x-intercepto vertical asymptoteo...

Basic Math
1.2K views

1. Explain the difference between the difference quotient and average rate of change . create a problem...

Finance
1.2K views

Here are some data on DCRB options as of May 14. Current stock price is $125.94,...

Biology
1.2K views

For the discussion activity, state two prevention approaches (policy, employer, community programs, health plans, etc.) from...

Physics
1.2K views

Use the exact values you enter to make later calculations. The set up in the diagram...

Advance Math
1.2K views

Prove Proposition 6.10 (Let f : X ? Y and g : Y ? Z...

Basic Math
1.2K views

Use the following to answer question 16 Figure An Increase in Aggregate Demand Price level...

Basic Math
1.2K views

In ?FGH, the measure of ?H-90, the measure of ?F=75, and HF = 31 feet....

Calculus
1.2K views

The expression cos(?/2)cos(?/5) + sin(?/2)sin(?/5) can be rewritten as which of the following?A) cos(7?/10)B)...

Accounting
1.2K views

You run a restaurant and are considering adding Indian cuisine to the regular burger menu....

Accounting
1.2K views

Sky Company reports a pretax operating loss of $50,000 in Year 3 for both financial...

Finance
1.2K views

WallerWorld Foods is wants to expand into the fros business with a kale flavored fros...