Question
Consider the following P represents price of stock at time t and Q represents shares outstanding at time t. P0 Q0 P1 Q1 P2 Q2
Consider the following P represents price of stock at time t and Q represents shares outstanding at time t.
P0 Q0 P1 Q1 P2 Q2
Stock A $80 400 $90 400 $85 400
Stock B $60 300 $55 300 $55 300
Stock C $90 200 $100 200 $50 400
a. Calculate the rate of return for a Price Weighed Index on day t = 0 to t = 1
b. What happens to the divisor on day 2
c. Calculate rate of return for Price weighted index on day t = 1 to t = 2
d. Calculate rate of return for first period for Value Weighted Index on day t = 0 to t = 1
e. Calculate rate of return for first period for Equally Weighted Index on day t = 0 to t = 1 Assume $50,000 investment in each stock
I ONLY NEED D AND E DONE PLEASE ONLY ANSWER D AND E, THANK YOU!
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