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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 89 49 98 00 100 200 200 P1 94 44 108 Rate of return 01 100 200 200 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 Answer is complete but not entirely correct. 5.61 % P2 94 44 54 b. An equally weighted index 92 100 200 400 Answer is complete but not entirely correct. Rate of return (1.02) *%
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