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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
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.
P Q P Q P Q
A
B
C
a Calculate the rate of return on a priceweighted index of the three stocks for the first period t to t Do not round intermediate calculations. Round your answer to decimal places.
b Calculate the new divisor for the priceweighted index in year Do not round intermediate calculations. Round your answer to decimal places.
c Calculate the rate of return for the second period t to t Round your answer to decimal places.
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