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5. Consider the three stocks in the following table. Pt represents price at time t, and Qt represents shares outstanding at time t. Stock C
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Consider the three stocks in the following table. Pt represents price at time t, and Qt represents shares outstanding at time t. Stock C splits two for one in the last period. A B 140 135 270 QO 145 290 290 P1 145 130 280 Q1 145 290 290 P2 145 130 145 Q2 145 290 580 Calculate the first-period rates of return on the following indexes of the three stocks (t = O to t = 1) (Do not round intermediate calculations. Round your answers to 2 decimal places. Omit the "%" sign in your response.) a. A market-value-weighted index. Rate of return 1% b. An equally weighted index. Rate of return 1:%Step by Step Solution
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