reconsider companies xyz and abc from concept check 5 calculate the percentage chang 665360
a. If you buy 100 shares of IBM stock, to what are you entitled?
b. What is the most money you can make on this investment over the next year?
c. If you pay $50 per share, what is the most money you could lose over the year?
Suppose XYZ in Table 2.3 increases in price to $110, while ABC falls to $20.
Find the percentage change in the price weighted average of these two stocks.
Compare that to the percentage return of a portfolio that holds one share in each company.
Reconsider companies XYZ and ABC from Concept Check 5. Calculate the percentage change in the market value weighted index. Compare that to the rate of return of a portfolio that holds $500 of ABC stock for every $100 of XYZ stock (i.e., an index portfolio).