This Test: 24pt Hep Consider av shares relative to the total value of both compa

Question

This Test: 24pt Hep Consider av shares relative to the total value of both companies. Answer the questions that folow ghted market index that Day Price Wof Shares Price of Shares $7 8.05 $11 $12.98 600 1,600 b. What is the re change in the total value of the stocks in the index fiom Day 1 to day 2? c. What is the a. what is the portolio weight tor Company 1 on Day 17 The portfollo weight sor Company 1 on Day 1 is (Round to two decamal pleces) b.what is the return on the pontoo tom Day 110 Day 2? The return on me potbto tom Day 1 toDay 2 is©% tRound to two den at places c. what is the percentage change in the total value of the stocks in the index trom Day 1 to day 27 The percentage change s decesal psaces o e Type tere to search

Explanation / Answer

Portfolio on Day1=7*600+11*1600=21800
Portfolio on Day2=8.05*600+12.98*1600=25598

Portfolio weight of company 1 on day1: 7*600/21800=19.2661%

Return on Portflio from Day1 to Day2=(25598-21800)/21800=17.422%

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