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Assume Edita Food Industries, EFG Hermes Holding Company and Egypt Aluminium Company represent a price-weighted index. Given the information at the below table: Po P2

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Assume Edita Food Industries, EFG Hermes Holding Company and Egypt Aluminium Company represent a price-weighted index. Given the information at the below table: Po P2 Edita EFG Qo EGP354000 EGP 43 1000 EGP55 6000 P1 Q1 EGP36 4000 | EGP 39 1000 EGP51 6000 Q2 EGP18 8000 EGP 39 1000 EGP 51 6000 Egypt Aluminium Calculate: The rate of return for the index for the first period (to to t=1). (5 marks) A The rate B. The value of the divisor in the second period (t=2). Assume that Edita Stock had a 2-1 split during this period, (5 marks) (5 marks) C. The rate of return for the second period (t1 to t-2) D. Assume this information given is for a market value-weighted index. calculate the first-period rates of return (from t=0 to 1)

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