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Investment problems

NEED THIS TO BE DONE IN 45 MINUTES. URGENT PLEASE. all the names and data in the problem are made up.

1)Susanne constructed a value-weighted index portfolio of AMZN, INTL, and CMCSA stocks last month (t=0) when the stock prices were $3156.13, $50.32, and $46.46, respectively. The number of shares outstanding is 0.5 billion for AMZN, 4.25 billion for INTL, and 4.64 billion for CMCSA. Today’s stock prices (t=1) are $3,286.42, $52.97, and $44.95, respectively. There were neither dividend payments nor any changes in the number of shares outstanding. Tim constructed a portfolio at the same time using the same three stocks as Susanne but he constructed an equally weighted index portfolio.

A) What is the return on Susannes value-weighted index?

B) What is the return on Tims equally-weighted index?

You should show all steps and calculations to find the answer to earn full credit.

Hint: It does not matter how much Susanne and Tim invested in their portfolios because I am asking you to calculate returns. However, if you want to use how much money they invested in their portfolios for convenience in your calculations, you can choose any amount, $100 million, for example.

2)Ms. Scott’s hedge fund focusing on growth stocks began with $200 million and reported 8%, 12%, and -2% returns during the next three months. At the end of the second month, the fund had net inflows of $50 million from new investors. Calculate the arithmetic average, geometric average, and dollar-weighted average returns of this fund. You should show all calculations to find the three average returns to earn full credit.

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