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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. B C PO 55 50 100 00 65 130 130 P1 65 40 110 01 65 130 130 P2 65 40 60 02 65 130 260 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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