Investments Analysis and Management Study Set 2
Quiz 4 :
Securities Markets and Market Indexes
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Q69 Q69 Q69
Global Stock Index is a value-weighted index with just two stocks in the index: ABC stock and XYZ stock. ABC ended 2018 at a price of $55 and had 1 million shares outstanding. XYZ stock ended 2018 at a price of $32 and had 4 million shares outstanding. ABC ended 2019 at a price of $29 (after a 2-for-1 split). XYZ stock closed at $35 for 2019. Calculate the new value of the index.
Q70 Q70 Q70
In 2018, Wendell placed a market buy order for 100 shares of AEM stock. Two years later, 2020, Walter placed a market sell order for AEM. Assuming Wendell's broker charges $20 per trade/transaction, what annual return did Wendell earn on the stock? (Wendell received no dividends from the stock).