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Problem 2-12 Consider the three stocks in the following table. Pt represents price at time t, and Qt represents shares outstanding at time t. Stock

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Problem 2-12 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. PO 120 110 220 QO 125 250 250 P1 130 105 225 01 125 250 250 P2 130 105 115 Q2 125 250 500 Calculate the first-period rates of return on the following indexes of the three stocks (t = 0 to t= 1): (Do not round intermediate calculations. Round your answers to 2 decimal places.) a. A market value-weighted index. Rate of return % b. An equally weighted index. Rate of return %

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