A B C Stock O144.67 Shares 1,000 5,000 3,000 Price_t $45 $24 $15 Price_t+1 $64 $26 $29 Based on Table 3 the three securities comprise an index. Calculate the market value weighted index for time period t+1?
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- Stock A B 1. Consider the following market of 3 stocks: C Po $11 $54 $149 Qo 40 80 50 P₁ $17 $20 $158 Q1 40 160 50 Calculate the equal value weighted index. Please round your answer to two decimal places.Question 1 Consider the three stocks in the following table. P, represents price at time t, and Qt represents shares outstanding at time t. Po Qo P₁ Q₁ 50 100 60 100 A IB 30 200 24 200 C 20 200 30 200 a. Calculate the rate of return on a price-weighted index of the three stocks b. Calculate the rate of return on a market value-weighted index of the three stocksUse the information below to answer the question 52WHI 52WLo Ticker Div Yield% P/E Vol 00s High Low Close Net Chg 52.53 28.31 KO 0.65 1.34 13.80 6,412 54.12 32.50? -0.81 What is the EPS for the stock? $3.52 O $2.94 O $3.08 O $2.12
- What is the beta of a portfolio comprised of the following securities? Stock Amount Invested Security Beta- 0.86 1.76 1.35 A B C $3600 $ 2800 $ 9000 Beta of portfolio to 2 decimal places is Numeric ResponseQuestion one Suppose you have the following information from Muscat stock market Stock Share outstanding Base day Closing price Second day closing price Salalah company 18 3 2.8 Dhofar power company 26 2.8 3.1 Oman company 10 4.1 2.1 Dhofar bank 28 3 1.8 Calculate 1. Price weighted index 2. Value weighted index plz use the formula shows in the picturesQuestion 6 Consider a market in which the returns on common stocks are described by the Fama-French Three Factor Model. The following table gives the factor sensitivities of Orange, Inc, Fallmart, and Vesla| Inc. stocks to each of the three factors. Security BSp500 BSMB Sensor, Inc. 1.5 -1.5 Contravent, Inc. 0.5 0.5 -0.5 Cosmo, Inc. 1.3 1.1 -0.8 a. Consider a portfolio, made up by selling short $10,000 of Contravent stocks and buying $10,000 of Sensor and $5000 of Cosmo. How sensitive will this portfolio be to each of the three factors? b. What is the expected return of your portfolio in (a) if the expected return on the S&P 500 index is 15%, the expected return on the SMB factor is 4%, the expected return on the HML factor is 2% and the risk free rate is 0.5% c. What is the systematic volatility (standard deviation of returns) of your portfolio in (a) given that the volatility of the S&P 500 index is 16%, the volatility of the SMB factor is 20% and the volatility of HML factor is 10%?
- SECURITY MARKET LINE You are given the following historical data on market returns, r, and the returns on Stocks A and B, r, and r: 8A-2 M' Year 1 29.00% 29.00% 20.00% 2 15.20 15.20 13.10 3 (10.00) (10.00) 0.50 4 3.30 3.30 7.15 23.00 23.00 17.00 6. 31.70 31.70 21.35 The risk-free rate, rp, is 9%. Your probability distribution for r for next year is as follows: M Probability M 0.1 (14%) 0.2 0.4 15 0.2 25 0.1 44 a. Determine graphically the beta coefficients for Stocks A and B. b. Graph the Security Market Line, and give its equation. c. Calculate the required rates of return on Stocks A and B. d. Suppose a new stock, C, with f̟ = 18% and b̟ = 2.0, becomes avail- able. Is this stock in equilibrium; that is, does the required rate of return on Stock C equal its expected return? Explain. If the stock is not in equilibrium, explain how equilibrium will be restored.A B с E F Investment Opportunity set for stocks and bonds with varios correlation coeffients SD s SDB 19 8 E(rs) 10 Weight in stocks WS -0.1 0.0 0.1 0.2 0.3 0.4 0.6 0.8 1.0 1.1 D E(TB) 5 Portfolio expected return ws(min) = (GB^2 - OBOSP) / (Os^2 + B^2 - 2*0BÚSP) E(rp) = ws(min) *E(rs)+(1-wg(min))*E(rb) = SDp = G -1 Portfolio Standard Deviation for Given Correlation 0 0.2 0.5 H Minimum Variance Portfolio 1Year AT&T Stock Returns Market Index Returns 1 8 6 2 7 3 3 10 12 4 14 13 5 8 9 Compute the correlation coefficient between AT&T and the Market Index. Enter answer using 3 decimal places. Example 0.123
- Question one Suppose you have the following information from Muscat stock market Stock Share outstanding Base day Closing price Second day closing price Salalah company 18 3 2.8 Dhofar power company 26 2.8 3.1 Oman company 10 4.1 2.1 Dhofar bank 28 3 1.8 Calculate 1. Price weighted index 2. Value weighted index plz show stepsSECURITY MARKET LINE You are given the following historical data on market returns, r, and the returns on Stocks A and B, r, and rp: 8A-2 M' A Year 1 29.00% 29.00% 20.00% 2 15.20 15.20 13.10 (10.00) (10.00) 0.50 4 3.30 3.30 7.15 5 23.00 23.00 17.00 31.70 31.70 21.35Question 2 Consider a market consisting of three stocks with the following information: Si Stock S2 S3 Price $100 $200 $500 Return 1.04 1.08 1.10 Standard 0.1 0.2 0.3 deviation For any two stocks i and j, o, = cov(x,,x,)=0,0,P,- Here, Piz =0.1,Piz =-0.8, P3 =0.2. What are the mean return and variance of this portfolio?