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Consider the three stocks in the following table. P t represents price at time t , and Q t represents shares outstanding at time t
Consider the three stocks in the following table. Pt represents price at time t, and Qt represents shares outstanding at time t. Stock C splits two for one in the last period. |
P0 | Q0 | P1 | Q1 | P2 | Q2 | |
A | 60 | 65 | 70 | 65 | 70 | 65 |
B | 50 | 130 | 40 | 130 | 40 | 130 |
C | 100 | 130 | 110 | 130 | 60 | 260 |
Calculate the first-period rates of return on the following indexes of the three stocks (t = 0 to t = 1) (Do not round intermediate calculations. Round your answers to 2 decimal places. Omit the "%" sign in your response.) |
a. | A market-value-weighted index. |
Rate of return | % |
b. | An equally weighted index. |
Rate of return | % |
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