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A Popular Value-Weighted Index Is Constructed Out of Shares in the Two

question 33

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A popular value-weighted index is constructed out of shares in the two companies shown in the table,below.On Day 1 you construct a portfolio that mimics the index.In order for your portfolio to earn the same return as the index from Day 2 to Day 3,what portfolio weight do you need for Company 1 on Day 2?
A popular value-weighted index is constructed out of shares in the two companies shown in the table,below.On Day 1 you construct a portfolio that mimics the index.In order for your portfolio to earn the same return as the index from Day 2 to Day 3,what portfolio weight do you need for Company 1 on Day 2?   A)  12% B)  13% C)  14% D)  15% E)  16%


Definitions:

Syllogism

A form of reasoning in which a conclusion is drawn from two given or assumed propositions (premises), each of which shares a common or middle term not present in the conclusion.

Figure

An object's shape, outline, or representation in art or mathematics, or a notable person in a particular field.

Syllogism

A form of reasoning in which a conclusion is drawn from two given or assumed propositions (premises); a logical structure that uses three parts.

Middle Term

In a categorical syllogism, the term that appears in both premises and links together the major and minor terms.

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