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21 Consider the three stocks in the following table. Pe represents price at time t, and Qt represents shares outstanding at time t. Stock C
21 Consider the three stocks in the following table. Pe represents price at time t, and Qt represents shares outstanding at time t. Stock C splits two-for-one in the last period. Po 0 P2 10093 200 4320043 200106 200 100 100 200 400 8 02:32:55 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 (t=1 to t=2). Rate of return %
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