Question
Consider the following four stocks in the table below. Pt represents the price at time t and Qt represents the number of outstanding shares at
Consider the following four stocks in the table below. Pt represents the price at time t and Qt represents the number of outstanding shares at time t. P0 Q0 P1 Q1 Stock A 58 100 55 100 Stock B 78 80 31 240 Stock C 36 200 38 200 Stock D 24 100 22 100 Question 7 (5 points): What was the split ratio for stock B? Question 8 (5 points): What is the rate of return on a price-weighted index of the four stocks? Question 9 (5 points): What is the rate of return on a market value-weighted index of the four stocks? Question 10 (5 points): What is the rate of return on an equally-weighted index?
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