# Investment Analysis Questions

1. You are given the following information regarding prices for a sample of stocks.
1. Construct a price-weighted index for these three stocks, and compute the percentage change in the index for the period from T to T + 1. Do not round intermediate calculations. Round your answer to two decimal places.

%

• Construct a value-weighted index for these three stocks, and compute the percentage change in the index for the period from T to T + 1. Do not round intermediate calculations. Round your answer to two decimal places.

%

• You are given the following information regarding prices for a sample of stocks.
1. Construct an equal-weighted index by assuming \$1,000 is invested in each stock. What is the percentage change in wealth for this portfolio? Do not round intermediate calculations. Round your answer to two decimal places.

%

• Compute the percentage of price change for each of the stocks. Do not round intermediate calculations. Round your answers to two decimal places.

Stock A:   %

Stock B:   %

Stock C:   %

Compute the arithmetic mean of these percentage changes. Do not round intermediate calculations. Round your answer to two decimal places.

%

• Compute the geometric mean of the percentage changes in Part b. Do not round intermediate calculations. Round your answer to two decimal places.

%

• Calculate a Dow Jones Industrial Average for days 1 through 5. Do not round intermediate calculations. Round your answers to three decimal places.

Day 1:

Day 2:

Day 3:

Day 4:

Day 5:

• Consider the following stock price and shares outstanding information.
1. Compute the beginning and ending values for a price-weighted index and a market-value-weighted index. Assume a base value of 100 and Year 1 as the base period. Do not round intermediate calculations. Round your answers to two decimal places.

PWIYear 1

PWIYear 2

VWIYear 1

VWIYear 2

• Compute the percentage change in the value of each index during the year. Do not round intermediate calculations. Round your answers to two decimal places.

Percentage change in PWI:   %

Percentage change in VWI:   %

• Compute the percentage change for an unweighted index assuming \$1,000 is invested in each stock. Do not round intermediate calculations. Round your answer to two decimal places.

%

• Given the monthly returns that follow, find the R2, alpha, and beta of the portfolio. Compute the average return differential with and without sign. Do not round intermediate calculations. Round your answers to two decimal places.

R2:

Alpha:   %

Beta:

Average return difference (with signs):   %

Average return difference (without signs)   %

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