Search for question
Question

Problem 4-02 You are given the following information regarding prices for a sample of stocks. Stock A: Stock B: % Stock C: a. Construct an equal-weighted index by assuming $1,000 is

invested in each stock. What is the percentage change in wealth for this portfolio? Do not round intermediate calculations. Round your answer to two decimal places. b. Compute the percentage of price change for each of the stocks. Do not round intermediate calculations. Round your answers to two decimal places. % % Stock A B C % % Number of Shares 1,000,000 10,000,000 29,000,000 % T $76 30 17 PRICE T + 1 $94 45 26 Compute the arithmetic mean of these percentage changes. Do not round intermediate calculations. Round your answer to two decimal places. c. Compute the geometric mean of the percentage changes in Part b. Do not round intermediate calculations. Round your answer to two decimal places.

Fig: 1