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In the following table, Pt denotes a stock's time t price in dollars, while Qt denotes its time t number of shares outstanding. - a.
In the following table, Pt denotes a stock's time t price in dollars, while Qt denotes its time t number of shares outstanding. - a. Create a table of the returns on a value-weighted index of the four stocks from t=0 to t=1,t=1 to t=2, and t=2 to t=3. Round returns to four decimal places. b. Create a table of the returns on an equal-weighted index of the four stocks from t= 0 to t=1,t=1 to t=2, and t=2 to t=3. Round returns to four decimal places. c. Which index outperformed the other? Why? d. Suppose you purchase the value-weighted index at time 0 but wish to eliminate all exposure to stock D. What position would you take in each period t=0 to t=1,t= 1 to t=2, and t=2 to t=3 to accomplish this
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