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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. Stock C splits
Consider the three stocks in the following table. P_t represents price at time t, and Q_t represents shares outstanding at time t. Stock C splits two for one in the last period. a. Calculate the rate of return on a price-weighted index of the three stocks for the first period (f = 0 to t = 1). (Do not round intermediate calculations. Round your answer to 2 decimal places. Omit the "%" sign in your response.) Rate of return % b. Calculate the new divisor for the price-weighted index in year 2. (Do not round intermediate calculations. Round your answer to 2 decimal places.) New divisor c. Calculate the rate of return for the second period (f = 1 to t = 2). (Omit the "%" sign in your response.) Rate of return %
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