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Exercise 1 The stocks of three companies are traded in a financial market. Company A issues N A = 2 0 0 shares, company B
Exercise The stocks of three companies are traded in a financial market. Company A issues shares, company issues shares, company issues shares. The following table shows the trading prices: a is a priceweighted index built using the three stocks. Find the return of the index from to and from to b is a valueweighted index built using the three stocks. Without computing it do you expect the returns of to be equal or different the one of Why?
Exercise The stocks of three companies are traded in a financial market. Company A issues
shares, company issues shares, company issues shares. The following table shows
the trading prices:
a is a priceweighted index built using the three stocks. Find the return of the index from to
and from to
b is a valueweighted index built using the three stocks. Without computing it do you expect the
returns of to be equal or different the one of Why?
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