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c. Calculate the rate of return of the price-weighted index for the second period ( t = 1 to t = 2). Consider the three

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c. Calculate the rate of return of the price-weighted index for the second period (t = 1 to t = 2).

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 C Po 88 48 96 Qo 100 200 200 P1 93 43 106 Q1 100 200 200 P2 93 43 53 Q2 100 200 400

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