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3) Consider the three stocks in the following table. Based on this information, compute the following: a) Calculate the rate of return on a price-weighted

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3) Consider the three stocks in the following table. Based on this information, compute the following: a) Calculate the rate of return on a price-weighted index of the three stocks for the first period (t=0 to t=1). b) Calculate the rate of return on a value-weighted index of the three stocks for the first period (t=0 to t=1). c) Calculate the rate of return on an equal-weighted index of the three stocks for the first period (t=0 to t=1). Note: The subscripts 0 , and 1 indicate time t=0 and t=1 respectively. P indicates price and Q indicates quantity (number of shares)

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