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38) Consider the three stocks in the following table. Stock Shares Outstanding (in million shares) Price ($) t=0 t=1 K 90 32 40 M 30
38) Consider the three stocks in the following table.
Stock | Shares Outstanding (in million shares) | Price ($) | |
t=0 | t=1 | ||
K | 90 | 32 | 40 |
M | 30 | 90 | 85 |
R | 55 | 41 | 47 |
(a) Calculate the rate of return on a price-weighted index of these three stocks from t=0 to t=1. (Assume a divisor of 3)
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