Question
Consider the three stocks in the following table. P+ represents price at time t, and qe represents shares outstanding at time f. Stock C
Consider the three stocks in the following table. P+ represents price at time t, and qe represents shares outstanding at time f. Stock C splits two-for-one in the last period. Pe Qo P1 Q1 P2 Q2 A 87 100 92 100 92 100 B 47 94 200 42 200 42 200 200 104 200 52 400 a. Calculate the rate of return on a price-weighted index of the three stocks for the first period (t=0 to 7=1). (Do not round intermediate calculations. Round your answer to 2 decimal places.) Rate of return 4 81 % b. What will be the divisor for the price-weighted index in year 2? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Divisor
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