Problem 2-20 (Algo)

Consider the three stocks in the following table. P_t represents price at time t, and Q_t represents shares outstanding at time t. Stock C splits two-for-one in the last period.

	P0	Q0	P1	Q1	P2	Q2
A	94	100	99	100	99	100
B	54	200	49	200	49	200
C	108	200	118	200	59	400

Required:

Calculate the first-period rates of return on the following indexes of the three stocks: (Do not round intermediate calculations. Round your answers to 2 decimal places.) a. A market valueweighted index

b. An equally weighted index