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Can you please answer PART C? Consider the three stocks in the following table. Pt represents price at time t, and Qt represents shares outstanding
Can you please answer PART C?
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 81 41 82 00 100 200 200 P1 86 36 92 01 100 200 200 P2 86 36 46 Q2 100 200 400 a. Calculate the rate of return on a price-weighted index of the three stocks for the first period (t= 0 to t= 1). (Do not round intermediate calculations. Round your answer to 2 decimal places.) Rate of return 4.90 % b. What will be the divisor for the price-weighted index in year 2? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Divisor 2.36 c. Calculate the rate of return of the price-weighted index for the second period (t= 1 to t= 2). Rate of return %Step by Step Solution
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