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Consider the three stocks in the following table. Pt represents price ot time t and Ot represents shares outstanding at t ime t Stock C

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Consider the three stocks in the following table. Pt represents price ot time t and Ot represents shares outstanding at t ime t Stock C splits two-for-one in the last period. Required: a. Calculate the rate of return on a price-weighted index of the three stocks for the first period ( t=0 to t=1). (Do not round intermediate calculations. Round your answer to 2 decimal places.) b. What will be the divisor for the price-weighted index in year 2 ? (Do not round intermediate calculations. Round your answer to 2 decimal places.) c. Calculate the rate of return of the price-weighted index for the second period (t=1 to t=2). Required: Find the equivalent taxable yield of the municipal bond for tax brackets of zero, 10\%, 20\%, and 30%. If it offers a yleld of 4%. (Round your answers to 2 decimal places.) 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. Required: 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 b. An equally weighted index

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