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solve this question on a paper. not on excel. thanks 19. Consider the three stocks in the following table. P, represents price at time t,
solve this question on a paper. not on excel. thanks
19. Consider the three stocks in the following table. P, represents price at time t, and Q. represents shares outstanding at time t. Stock C splits two-for-one in the last period. (LO 2-2) Po Qo P Q P Q 90 100 95 100 95 100 50 200 45 200 45 200 100 200 110 200 55 400 a. Calculate the rate of return on a price-weighted index of the three stocks for the first period (r= 0 tot = 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 1 = 2). aturn on the ABC Step by Step Solution
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