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Consider the three stocks in the following table. Pe represents price at time t and Qt represents shares outstanding at time t Stock splits two

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Consider the three stocks in the following table. Pe represents price at time t and Qt represents shares outstanding at time t Stock splits two for one in the last period A B Po 55 50 100 Qe 65 130 130 P1 65 40 110 Q1 65 130 130 P2 65 40 60 Q2 65 130 260 ed Calculate the first-period rates of return on the following indexes of the three stocks (t 0 tot = 1): (Do not round intermediate calculations. Round your answers to 2 decimal places.) a. A market value-weighted index. 5 Rate of return % inces b. An equally weighted index Rate of return 56

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