How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask JKCPA Your Own Question
Category: Finance
Satisfied Customers: 5884
Experience:  Bachelors degree and CPA with Accounting experience.
Type Your Finance Question Here...
JKCPA is online now
A new question is answered every 9 seconds

You have accumulated data on three stocks (see below). You

Resolved Question:

You have accumulated data on three stocks (see below). You have decided to use the information on these stocks to form an index. You want to find the average earned rate of return for 2011 on your index. If you follow the averaging procedure used to calculate the S&P 500 Index return, what would your index's rate of return be? Hints: Rates of return are based on beginning-of-year prices, and the S&P Index is weighted by market values of the companies in the index.
Stock Dividend Beginning Price Ending Price Sharing Outstanding (millions)
A $1.50 $30.00 $32.00 5.00
B $2.00 $28.50 $27.00 4.50
C $0.75 $20.00 $24.00 20.00
Submitted: 6 years ago.
Category: Finance
Expert:  JKCPA replied 6 years ago.

Thanks for your question.

Please click here for the solution.

Hope this helps!
JKCPA and 3 other Finance Specialists are ready to help you