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Consider the three stocks in the following table. Prepresents price at time t, and Q.represents shares outstanding at time t. Stock C splits two-for-one in
Consider the three stocks in the following table. Prepresents price at time t, and Q.represents shares outstanding at time t. Stock C splits two-for-one in the last period. P, Qo P, Q, P, Q2 A 90 100 95 100 95 100 B 50 200 45 200 45 200 C 100 200 110 200 55 400 a. Calculate the rate of return on a price-weighted index of the three stocks for the first period (t = 0 to t= 1). b. What must happen to the divisor for the price-weighted index in year 2
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