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Consider the following information on 3 stocks ( P= price, Q=Quantity ): a-) Calculate the return on i- price-weighted ii- value-weighted iii- equally-weighted index from
Consider the following information on 3 stocks ( P= price, Q=Quantity ): a-) Calculate the return on i- price-weighted ii- value-weighted iii- equally-weighted index from period 0 to period 1. b-) Why are the returns so different for the same set of stocks for the same period? c-) What should the new divisor be for period 2 in calculating the price-weighted index
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