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3. Value-weighted index, market cap, return) Consider the three stocks in the following table. Pt represents the closing price at time t, and Qt represents
3. Value-weighted index, market cap, return) Consider the three stocks in the following table. Pt represents the closing price at time t, and Qt represents the total number of shares outstanding at time t (in millions of shares). There are no dividends or stock splits. A S26 80 S30 80 $50 30 $44 30 $4575 $45 75 (a) Find the market capitalization of stock A (Smillion) in period (b) Find the total market capitalization of stocks (Smillion) in period1 (c) Find the weight of stock C in period 1 in terms of market capitalization. (d) Find the return on a value-weighted index of the 3 stocks from period 1 to period 2
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