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Consider the three stocks (e.g., A, B, and C) in the following table. P0 represents the price at time t=0,Q0, represents shares outstanding at time

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Consider the three stocks (e.g., A, B, and C) in the following table. P0 represents the price at time t=0,Q0, represents shares outstanding at time t=0, and the like. Stock C splits two-for-one in the last period. A. What is the rate of return on a price-weighted index of the three stocks for the first period (t=0 and t=1) ? B. What is the divisor for the price-weighted index in year 2 ? C. What is the rate of return of the price-weighted index for the second period ( t=1 to t=2) ? D. What is the rate of return on a market value-weighted index of these three stocks for the first period (t=0 and t=1)

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