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please help me and please show work . Make sure the answer is correct. 8. Consider the three stocks in the following table. Pt represents
please help me and please show work . Make sure the answer is correct.
8. 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. ( LO 2-2) 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 must happen to 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 ) 9. Using the data in the previous problem, calculate the first-period rates of return on the following indexes of the three stocks: ( 1LO22 ) a. A market value- weighted index b. An equally weighted index Step by Step Solution
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