# Consider the three stocks in the following table. Pt represents the price at the end of period t and Qt is the number of shares outstanding. Stock C splits 3:1 during period 2. P0Q0P1Q1P2Q2A \$

Consider the three stocks in the following table. Pt represents the price at the end of period t and Qt is the number of shares outstanding. Stock C splits 3:1 during period 2. P0Q0P1Q1P2Q2
A \$ 69.00150.00 \$ 65.00150.00 \$ 74.00150.00
B \$ 37.00400.00 \$ 40.00400.00 \$ 35.00400.00
C \$ 9.00200.00 \$ 15.00200.00 \$ 8.00600.00
1.1 Calculate the price-weighted index of the three stocks for each period (4 points). What is the divisor for each period (4 points)? Does it change in the last period (2 points)? Why or why not (2 points)? 1.2 Calculate the price-weighted index returns for the periods ending in 1 and 2 (7 points). 1.3 Calculate the value-weighted index returns for the periods ending in 1 and 2 (7 points). 1.4 Calculate the equal-weighted index return for the periods ending in 1 and 2 (7 points).
Problem 2 Margin (34 Points)2.A. The current market price for XYZ is \$175 per share. Initial margin is 50%, maintenance margin is 35% and margin interest is 1.95% per year. XYZ pays annual cash dividends of \$6.25 per share. 2.A.1) You believe the stock price will increase over the next year and wish to trade exactly one round lot. What trade should you make (2 points)? How much margin would you have to post to your account (4 points)? At what price would you receive a margin call (7 points)? 2.A.2) Suppose you are correct and the stock rises to \$192 per share at the end of the year. What is your percentage return on equity for this trade (4 points)? 2.B. The current market price for ABC is \$93 per share. Initial margin is 50%, maintenance margin is 35% and there is no margin interest. ABC pays annual cash dividends of \$4.25 per share. 2.B.1) You believe the stock price will decrease over the next year and wish to trade exactly one round lot. What trade should you make (2 points)? How much margin would you have to post to your account (4 points)? At what price would you receive a margin call (7 points)?

## Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
\$26
The price is based on these factors:
Number of pages
Urgency
Basic features
• Free title page and bibliography
• Unlimited revisions
• Plagiarism-free guarantee
• Money-back guarantee
On-demand options
• Writer’s samples
• Part-by-part delivery
• Overnight delivery
• Copies of used sources
Paper format
• 275 words per page
• 12 pt Arial/Times New Roman
• Double line spacing
• Any citation style (APA, MLA, Chicago/Turabian, Harvard)

# Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

### Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

### Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

### Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.