uctions d Test This test has a time limit of 2 hours and 5 minutes This test wil

Question

uctions d Test This test has a time limit of 2 hours and 5 minutes This test will save and submit automatically when the time expi Warnings appear when half the time, 5 minutes, 1 minute, and 30 seconds remain iple Attempts Not allowed. This test can only be taken once ce Completion Once started, this test must be completed in one siting Do not leave the test before clicking Save and Submit emaining Time: 1 hour, 57 minutes, 45 seconds. Question Completion Status: Moving to another question will save this response tion 6 Using the following table, construct a value-weighted index of the three stocks (when appropriate, you may use a divisor of 100). Stock Price Share 100,000 $ 20 150,000 100,000 Beta 0.95 1.05 1.15 Return 10% 12% 14% 8 $ 30 $ 35 -> Moving to another question will save this response Several add-ons are ready for use Display E221i

Explanation / Answer

Weighted Beta = 1.07 times

Stock Share Price Market Value Return % Return Prop;ortion Beta Weight Beta A 100000 20 2,000,000 10% 200,000 0.1626(200000/1230000) 0.95 0.15 B 150000 30 4,500,000 12% 540,000 0.4390 1.05 0.46 C 100000 35 3,500,000 14% 490,000 0.3984 1.15 0.46 Total 10,000,000 1,230,000 1 1.07

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