Fundamentals Of InvestmentTU Board 2081
Consider the following three stocks given in the following Table. Q represents number of shares and P represents price of stock. Day 0Day 1Day 2StocksQ₀P₀ (Rs.)Q₁P₁ (Rs.)Q₂P₂…
10Consider the following three stocks given in the following Table. Q represents number of shares and P represents price of stock.
Day 0Day 1Day 2StocksQ₀P₀ (Rs.)Q₁P₁ (Rs.)Q₂P₂ (Rs.)Alpha2008020090200110Beta30010030011060065Gamma400120400130400120 Stock Beta splits two-for-one on day 2.
a. Calculate price weighted indexes (PWI) for Day 0, Day 1 and Day 2. b. What would be return for the day 1 based on PWI? c. Calculate value weighted indexes (VWi) for Day 1 and Day 2, assume base index is 100. d. What would be rate of returns for day 2 based on value weighted index?
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