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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. represents price at time and represents shares outstanding at time Stock
splits two for one in the last period.
Required:
a Calculate the rate of return on a priceweighted index of the three stocks for the first period to
Note: Do not round intermediate calculations. Round your answer to decimal places.
b Calculate the new divisor for the priceweighted index in year
Note: Do not round intermediate calculations. Round your answer to decimal places.
c Calculate the rate of return for the second period to
Note: Round your answer to decimal places.
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