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thats as clear as it gets lol Consider the three stocks in the following table. Pe represents price at time and represents shares outstanding at
thats as clear as it gets lol
Consider the three stocks in the following table. Pe represents price at time and represents shares outstanding at time Stock splits two-for-one in the last period Po 95 55 110 A B Op 100 200 200 P1 100 100 P2 100 50 60 02 100 200 400 120 200 a. Calculate the rate of return on a price weighted index of the three stocks for the first period (t=0 to 1 (Do not round intermediate calculations. Round your answer to 2 decimal places.) Rate of return 1% b. What will be the divisor for the price-weighted index in year 2? (Do not round intermediate calculations. Round your answer to 2 decimal places) Diviso c. Calculate the rate of return of the price weighted index for the second period (i=1 to 1=2) Rate of return % Step by Step Solution
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