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solve for explain for like 5. Consider the 3 stocks in the following table. Prepresents price at time t, and Q, represents shares outstanding at
solve for explain for like 5. Consider the 3 stocks in the following table. Prepresents price at time t, and Q, represents shares outstanding at timet. Stock C splits two for one in the last period. P.QPQPQ, A $ 90 100 $ 95 100 $ 95 100 B $ 50 200 $ 45 200 $ 45 200 C $ 100 200 $ 110 200 $ 55 400 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 for the second period (t=1 to t=2). d. Calculate the rate of return on a market value-weighted index of the three stocks for the first period (t=0 to t=1). e. Calculate the rate of return on an equally weighted index of the three stocks for the first period (t=0 to t=1)
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