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Please Help, I will like post!! (10pt) 2. Consider the three stocks in the following table. Pt represents price at time t, and Qt represents
Please Help, I will like post!!
(10pt) 2. 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. a. Calculate the rate of return on a price-weighted index of the three stocks for the first period (t=0 to t=1). b. What will be the divisor for the price-weighted index in year 2 ? c. Calculate the rate of return of the price-weighted index for the second period (t=1 to t=2). d. Calculate the rate of return on a value-weighted index of the three stocks for the first period (t=0 to t=1). e. Calculate the rate of return on a equal-weighted index of the three stocks for the first period (t=0 to t=1)Step by Step Solution
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