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Consider the three stocks in the following table. Stock Initial Price Final Price Shares Outstanding (millions) A $80 $100 100 B $50 $30 300 C
Consider the three stocks in the following table.
Stock | Initial Price | Final Price | Shares Outstanding (millions) |
A | $80 | $100 | 100 |
B | $50 | $30 | 300 |
C | $120 | $125 | 100 |
1. Calculate the rate of return on an equally weighted index of the three stocks.
2. Calculate the rate of return on a price-weighted index of the three stocks.
3. Calculate the rate of return on a market-weighted index of the three stocks.
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