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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. P0 Q0 P1 Q1 P2 Q2 A 120 125 130 125 130 125 B 110 250 105 250 105 250 C 220 250 225 250 115 500 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.
b. An equally weighted index.
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