Quiz – Calculating New Index Value for Market-Weighted Index
Essentials of Investments
Bodie, Kane, and Marcus
12th Edition
Calculate the new value of a market-weighted index given changes in stock prices.
Calculate the new value of a market-weighted index given changes in stock prices.
Calculate the index value for a price-weighted index using the share prices of multiple stocks.
Calculate the 1-day rate of return on a benchmark market value index given the initial and final stock prices for three stocks in the index.
Determine the Annual Percentage Rate (APR) for a home mortgage, given the monthly interest rate.
Determine the beta of a stock given its correlation with the market, and the standard deviations of both the stock and the market.
Determine the cash dividend for a stock, given its holding-period return, its starting price, and its ending price.
Determine the correlation coefficient between the returns on Investment A and Investment B given their standard deviations and the covariance of their returns.
Determine the covariance of returns between Investment A and Investment B, given their respective standard deviations and the correlation coefficient between their returns.
Determine the Effective Annual Rate (EAR) for a car loan that incurs monthly interest charges at a specified rate.
Determine the holding-period return for a share of stock you purchased and later sold after receiving a dividend. Calculate the return based on the initial purchase price, the dividend received, and the selling price of the stock.