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17 help asap Consider the three stocks in the following table. Pt represents price at time t, and ot represents shares outstanding at time t
17 help asap
Consider the three stocks in the following table. Pt represents price at time t, and ot represents shares outstanding at time t Stock splits two-for-one in the last period. A B PO 80 40 80 DO 100 200 200 Pi 85 35 90 01 100 200 200 P2 85 35 45 02 100 200 400 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.) Rate of return b. What will be the divisor for the price-weighted index in year 2? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Divisor c. Calculate the rate of return of the price-weighted index for the second period (=1 to 2) Rate of return % Step by Step Solution
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