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1. An analyst considers different indices that could be constructed from stocks A, B, and C given the information below. In particular, the analyst considers
1. An analyst considers different indices that could be constructed from stocks A, B, and C given the information below. In particular, the analyst considers all 6 combinations given by the 3 different weighting methods (value-weighted, equally-weighted, and price-weighted) and the 2 different return definitions (price return, total return). Stock Beginning-of- End-of-period # Shares outstanding Dividends per period price price throughout period share A 10.00 12.00 100 1.00 B 20.00 20.50 100 0.50 C 30.00 30.00 200 0.30 Which of the 6 indices would yield the highest return for the period? Which of the 6 indices would yield the lowest return
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