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please all show work/explanation (not in excel) will upvote. thank you. Suppose there are only three stocks traded in the stock market: A, B, and
please all show work/explanation (not in excel) will upvote. thank you.
Suppose there are only three stocks traded in the stock market: A, B, and C, and the information about their stock prices (P) and shares outstanding (S) is listed in the following table: Pto) S(t-0) P(t-1) 35 S(t-1) 10 A 30 10 B 20 20 15 20 c 5 50 6 50 1) Calculate the individual stock returns for A, B and from t0tot- B) Use two different methods to calculate the average return of the price weighted index. In the first method, construct the price weighted index first, and then calculate the returns. The divisor does not matter here, but you can assume it is 1. In the second method, calculate the weighted average of individual stock returns, where weights are proportional to prices. c) What is the average return of the equal weighted index? Use one sentence to explain why it is different from the price weighted retum Step by Step Solution
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