CASE 3

STOCK PRICE
X Y Z
DATE
jan 13 2018 20 40 30
jan 14 2018 25 42 18
jan 15 2018 27 45 8
jan 16 2018 11 40 10

Price weighted average

sum of prices/No. of stocks

13-Jan 30
14-Jan 28.3333333333333
15-Jan 26.6666666666667
16-Jan 20.3333333333333
 SHARE
X Y Z
PRICE
1000 2000 1000 2 is to 1 2000 15
1000 2000 2000
1000 2000 2000 3 is to 1 3000 9
3000 2000 2000

RETURN (Ending price-starting price)/Starting price*100 weights

X Y
X 45 0.153846 0.615385
Y 0 0.172414 0.57931
Z 66.66 0.203008 0.676692
0.24812 0.601504

Value of weighted index Divisor

when initial index is 100 13-Jan nil
13-Jan 100 50 14-Jan 2.2058
14-Jan 111.5385 55.76925 15-Jan
15-Jan 102.3077 51.15385 16-Jan 1.9375
16-Jan 102.3077 51.15385
 Market Capitalization
X Y Z
20000 80000 30000 130000
25000 84000 36000 145000
27000 90000 16000 133000
33000 80000 20000 133000

Index
Z 13-Jan 34.61538
0.230769 14-Jan 33.11034
0.248276 15-Jan 36.89474
0.120301 16-Jan 28.29323
0.150376

2.3437
 CASE 4

stock U
expected
Probability return R
0.1 18 1.8 15.35 235.6225 23.56225
0.25 8 2 5.35 28.6225 7.155625
0.4 2 0.8 -0.65 0.4225 0.169
0.15 -3 -0.45 -5.65 31.9225 4.788375
0.1 -15 -1.5 -17.65 311.5225 31.15225

total
expected
return 2.65 66.8275

Standard Deviation/RISK 8.174809

stock V
expected
Probability return R
0.1 8 0.8 5.65 31.9225
0.25 4 1 1.65 2.7225
0.4 3 1.2 0.65 0.4225
0.15 -1 -0.15 -3.35 11.2225
0.1 -5 -0.5 -7.35 54.0225

total
expected
return 2.35

Standard deviation/RISK 3.335791

 3.19225
0.680625
0.169
1.683375
5.40225

11.1275