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Consider the three stocks in the following table Pt represents price at time t and Qt respresents shares outstanding at time t. Stock C splits
Consider the three stocks in the following table Pt represents price at time t and Qt respresents shares outstanding at time t. Stock C splits two-for-one in the last period (t=2)
P0 | Q0 | P1 | Q1 | P2 | Q2 | ||
A | 89 | 100 | 94 | 100 | 94 | 100 | |
B | 49 | 200 | 44 | 200 | 44 | 200 | |
C | 98 | 200 | 108 | 200 | 54 | 400 |
Calculate the firstperiod-rates of return on the following indexes of the three stocks: (Do not round intermediate calculations. Round your answers to 2 decimals)
a. Market value-weighted index: Rate of Return= ?
b.. An equally weighted index: rate of return=?
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