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Homework 21 Saved represents shares outstanding at time t. Stock C Consider the three stocks in the following table. Pt represents price at time t,
Homework 21 Saved represents shares outstanding at time t. Stock C Consider the three stocks in the following table. Pt represents price at time t, and splits two for one in the last period. points PO P 01 P2 A 95 525 100 525 100 B3545030 450 30 C 75 750 90 750 45 02 525 450 1,500 eBook 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.) Print Rate of return References b. Calculate the new divisor for the price-weighted index in year 2. (Do not round intermediate calculations. Round your answer to 2 decimal places.) New divisor c. Calculate the rate of return for the second period (t = 1 tot = 2). Rate of return %
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