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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. A B C Po 50 45 90 00 60 120 120 P1 60 35 95 01 60 120 120 P2 60 35 50 02 60 120 240 Calculate the first-period rates of return on the following indexes of the three stocks (t=0 to t= 1): (Do not round intermediate calculations. Round your answers to 2 decimal places.) a. A market value-weighted index. Rate of return % b. An equally weighted index. Rate of return %
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