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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. Stoch splits two
Consider the three stocks in the following table. Pt represents price at time t, and Qt represents shares outstanding at time t. Stoch splits two for one in the last period. a. Calculate the rate of return on a price-weighted index of the three stocks for the first period ( t=0 to t=1). (Do not round intermediate calculations. Round your answer to 2 decimal places.) b. Calculate the new divisor for the price-weighted index in year 2. (Do not round intermediate calculations. Round your answer to 2 decimal places.) c. Calculate the rate of return for the second period ( t=1 to t=2 ). (Round your answer to 2 decimal places.)
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