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2. Consider the following data for three stocks. Stock Initial Price Final Price Number of Outstanding Shares Stock 1 $10 $12 20 million Stock 2

2. Consider the following data for three stocks.

Stock Initial Price Final Price Number of Outstanding Shares

Stock 1 $10 $12 20 million

Stock 2 $25 $24 5 million

Stock 3 $100 $106 1 million

Compute the rate of return for each of the following portfolios:

(a) Price weighted

(b) Value weighted

(c) Equal weighted

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