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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

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.

P0

Q0

P1

Q1

P2

Q2

A

55

65

65

65

65

65

B

50

130

40

130

40

130

C

100

130

110

130

60

260

Calculate the first-period and second-period rates of return on the following indexes of the three stocks

1. A market-value-weighted index.

2. An equally weighted index.

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