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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. 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 and put it in the following format XX.XX. Do NOT record starting 0's.) Rate of return % b. What will be the divisor for the price-weighted index in year 2 ? (Do not round intermediate calculations. Round your answer to 2 decimal places and put it in the following format XX.XX. Do NOT record starting 0 's.) Divisor
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