Question
3. Consider the three stocks in the following table. Pt represents price at time t, and Qt represents shares outstanding at time t. Stock C
3. 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 | 135 | 140 | 140 | 140 | 140 | 140 |
B | 125 | 280 | 120 | 280 | 120 | 280 |
C | 250 | 280 | 260 | 280 | 135 | 560 |
Calculate the first period rates of return on the following indexes of the three stocks (t = 0 to t = 1)
a. A market value-weighted index. (10 points)
b. An equally weighted index. (10 points
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Using Financial Accounting Information The Alternative to Debits and Credits
Authors: Gary A. Porter, Curtis L. Norton
7th Edition
978-0-538-4527, 0-538-45274-9, 978-1133161646
