Question
10. Consider the following data for the three stocks that make up the market: Period 0 Stock A: $60 Stock B: $80 Stock C: $20
10. Consider the following data for the three stocks that make up the market:
Period 0
Stock A: $60
Stock B: $80
Stock C: $20
Period 1
Stock A: $70
Stock B: $70
Stock C: $25
What is the single-period return on the price-weighted index constructed from the three stocks if stocks A and B were to split 2 for 1 and 4 for 1, respectively, after period 0?
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Public Finance and Public Policy
Authors: Jonathan Gruber
5th edition
1464143331, 978-1464143335
