Use the Information for the Question(s)below

question 44

Essay

Use the information for the question(s)below.
An exchange traded fund (ETF)is a security that represents a portfolio of individual stocks.Consider an ETF for which each share represents a portfolio of two shares of International Business Machines (IBM),three shares of Merck (MRK),and three shares of Citigroup Inc.(C).Suppose the current market price of each individual stock are shown below:
-The price per share of the ETF in a normal market is:

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Definitions:

Capital

Represents the amount of funds provided by owners or investors to support business operations.

Owner's Equity

Owner's Equity is the total assets of an entity minus its total liabilities, representing the ownership interest in the company.

Income Statement

A financial report summarizing revenue, expenses, and profits over a given period, highlighting a company’s financial performance.

Balance Sheet

A financial statement that shows the assets, liabilities, and owner’s equity of an entity at a specific point in time, reflecting the financial position.