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16. Following are the prices of stock A, B, and C on day ( and day 1. The number of shares outstanding of each stock

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16. Following are the prices of stock A, B, and C on day ( and day 1. The number of shares outstanding of each stock does not change from day 0 to 1. Stock Day 0 price ($) Day 1 price ($) Number of shares outstanding (millions) 10 A 200 210 B 50 45 150 60 62 20 (a) Consider a price-weighted index consisting of the three stocks. What is the return on the index from day 0 to 1? [3 points] (b) Consider a market value-weighted index consisting of the three stocks. What is the return on the index from day 0 to 1? [3 points]

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