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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 87 47 94 00 100 200 200 P1 92 42 104 100 200 200 P2 92 42 52 100 200 400 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 Rate of return 1% b. An equally weighted index Rate of return 1%
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