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stock P0 Q0 P1 Q1 P2 Q2 a $90 100 $95 100 $95 100 b $50 200 $45 200 $47 200 c $100 200 $120
Consider the three stocks in the following table. Pt represents the period price at time t, and Qt represents the shares outstanding at time t (Remember to show me you steps in a separate cell).
A. Calculate the rate of return on a Price-Weighted index of the three stocks for the first period (from t=0 to t=1) B. Calculate the rate of return on a Market Value-Weighted index of the three stocks for the second period (from t=1 to t=2) |
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