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Consider the following four stocks in the table below. Price t represents the price at time t and Quantity t represents the number of outstanding

Consider the following four stocks in the table below. Price t represents the price at time t and Quantity t represents the number of outstanding shares at time t.

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a) Find the rate of return on a price-weighted index of the four stocks

b) Find the rate of return on an equally weighted index of the four stocks

Price 0 60 80 35 20 Quantity 0 100 80 200 100 Price 1 Stock A Stock B Stock C Stock D Quantity 1 100 200 200 100 34 38

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