Chapter 02 Asset Classes and Financial Instruments

84.

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Based on the information given, for a price-weighted index of the three stocks calculate

A. the rate of return for the first period (t = 0 to t = 1).
B. the value of the divisor in the second period (t = 2). Assume that Stock A had a 2-1 split during this period.
C. the rate of return for the second period (t = 1 to t = 2).

85.

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Based on the information given for the three stocks, calculate the first-period rates of return (from t = 0 to t = 1) on

A. a market-value-weighted index.
B. an equally weighted index.

86.

Distinguish between U. S. Treasury debt and U.S agency debt.

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