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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 | 55 | 65 | 65 | 65 | 65 | 65 |
B | 45 | 120 | 35 | 120 | 35 | 120 |
C | 90 | 120 | 95 | 120 | 50 | 240 |
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.)
a. A market-value-weighted index.
Rate of return %?
b. An equally weighted index.
Rate of return %?
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