Assume the following information concerning two stocks that make up an index. Wh

Question

Assume the following information concerning two stocks that make up an index. What is the value-weighted return for the index? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Omit the "%" sign in your response.)

Assume the following information concerning two stocks that make up an index. What is the value-weighted return for the index? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Omit the "%" sign in your response.)

Explanation / Answer

Company Shares Beg of year End of year Return(End price - beginning price) Total return(No of shares * return) Total Investment(No of shares*Beg price) Weight Return(Total return/Total Investment) Weighted return   Kirk, Inc.                 42,000.00                                         41.00                  45.00                                 4.00           168,000.00                    1,722,000.00                                     0.39 9.76% 3.77%   Picard Co.                 36,000.00                                         76.00                  82.00                                 6.00           216,000.00                    2,736,000.00                                     0.61 7.89% 4.85%                    4,458,000.00                                     1.00 8.61%

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