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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.Ptrepresents price at timet, andQtrepresents shares outstanding at timet.Stock C splits two-for-one in the last period.
P0 Q0 P1 Q1 P2 Q2
A 80 100 85 100 85 100
B 40 200 35 200 35 200
C 80 200 90 200 45 400
Calculate the first-period rates of return on the following indexes of the three stocks:(Do not round intermediate calculations. Round your answers to 2 decimal places.)
a.A market value-weighted index
Rate of Return: ____________
b.An equally weighted index
Rate of Return: __________
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