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Consider a stock index comprised of three stocks: A, B, and C. Information pertaining to the three stocks is provided below: Security # of Shares
Consider a stock index comprised of three stocks: A, B, and C. Information pertaining to the three stocks is provided below: Security # of Shares 1,400 1,800 3,000 Initial Price $76 $62 $24 Price in 1 Year $92 $74 $20 Compute the return on the index over the year (a) (b) (c) for a price-weighted average like the Dow for a value-weighted index like the S&P 500 Index. for an equally-weighted index
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