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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

stock P0 Q0 P1 Q1 P2 Q2
a $90 100 $95 100 $95 100
b $50 200 $45 200 $47 200
c $100 200 $120 200 $95 200

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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