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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 Po 130 125 250 Op 135 270 270 P1 135 120 260 Q1 135 270 270 P2 135 120 135 02 135 270 540 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. Answer is complete but not entirely correct. Rate of return 1.98 % b. An equally weighted index. Answer is complete but not entirely correct. Rate of return 2.27 X %
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