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1 Consider the three stocks in the following table. Pt represents price at time t, and Qt represents shares outstanding at time t. Stock C
1 Consider the three stocks in the following table. Pt represents price at time t, and Qt represents shares outstanding at time t. Stock C splits two for one in the last period. 5 points A B B Po 20 75 375 95 850 55 1,050 P1 01 80 375 90 850 60 1,050 P2 80 375 90 850 30 2,100 Skipped a. Calculate the rate of return on a price-weighted index of the three stocks for the first period (t = 0 to t= 1). (Do not round intermediate calculations. Round your answer to 2 decimal places.) eBook Rate of return 1% Print References b. Calculate the new divisor for the price-weighted index in year 2. (Do not round intermediate calculations. Round your answer to 2 decimal places.) New divisor c. Calculate the rate of return for the second period (t=1 to t= 2). (Round your answer to 2 decimal places.) Rate of return %
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