« previous next »

Author Question: Consider a value-weighted market index that includes the two companies shown in the table. You form ... (Read 54 times)

mcmcdaniel

  • Hero Member
  • *****
  • Posts: 550
on: Jul 10, 2018
Consider a value-weighted market index that includes the two companies shown in the table. You form a portfolio to mimic the index on Day 1. The mimic portfolio is designed to earn the same return as the index.
 
  What is the portfolio weight for Company 1?
 
   Company 1 Company 1 Company 2 Company 2
  Day Price  of Shares Price  of Shares
  1 6.62 200 10.00 750
  2 7.24 200 10.54 750
 
  A) 15
  B) 16
  C) 17
  D) 18
  E) 19

Question 2

You deposited (1,000 ) in a savings account that pays 8 percent interest, compounded quarterly, planning to use it to finish your last year in college.
 
  Eighteen months later, you decide to go to the Roshy Mountains to become a ski instructor rather than continue in school, so you close out your account. How much money will you receive? (Round to the nearest whole dollar)
  A) 1,171
  B) 1,126
  C) 1,082
  D) 1,163
  E) 1,008


jennafosdick

  • Sr. Member
  • ****
  • Posts: 345
Reply #1 on: Jul 10, 2018
Answer to Question 1

A

Answer to Question 2

B


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Drug abusers experience the following scenario: The pleasure given by their drug (or drugs) of choice is so strong that it is difficult to eradicate even after years of staying away from the substances involved. Certain triggers may cause a drug abuser to relapse. Research shows that long-term drug abuse results in significant changes in brain function that persist long after an individual stops using drugs. It is most important to realize that the same is true of not just illegal substances but alcohol and tobacco as well.

Did you know?

A recent study has found that following a diet rich in berries may slow down the aging process of the brain. This diet apparently helps to keep dopamine levels much higher than are seen in normal individuals who do not eat berries as a regular part of their diet as they enter their later years.

Did you know?

Critical care patients are twice as likely to receive the wrong medication. Of these errors, 20% are life-threatening, and 42% require additional life-sustaining treatments.

Did you know?

Eat fiber! A diet high in fiber can help lower cholesterol levels by as much as 10%.

Did you know?

There are more bacteria in your mouth than there are people in the world.

Male dolphins form alliances with others Male dolphins form alliances with others
GI series. (a) Upper GI series begins with a barium swallow, barium shake, or barium meal. (b) Lower GI series. (a) Upper GI series begins with a barium swallow, barium shake, or barium meal. (b) Lower
Table 6.1 illustrates the main regime types and their differences. It breaks the regimes into four Table 6.1 illustrates the main regime types and their differences. It breaks the regimes into four
Instructions for Completing the CMS-1500 (02/12) Claim Form Instructions for Completing the CMS-1500 (02/12) Claim Form
Use the information in the above table to establish a Born-Haber cycle to determine the ... Use the information in the above table to establish a Born-Haber cycle to determine the ...
Video: Kinetic parameters & Kinetic experiment

For a complete list of videos, visit our video library