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The table below describes the price per share (Pt) and the number of shares outstanding (Qt) at = 0 and then again at time =
The table below describes the price per share (Pt) and the number of shares outstanding (Qt) at = 0 and then again at time = 1. The subscripts indicate which time (t = 0 or 1) that the information applies to. time Stock A Stock B Po 90 -0.026 50 Qo 0.055 100 200 P 95 45 (A) What is the "market cap" for Stock A at time 0? Q1 100 200 9 pts 9000 (B) Assume you have an index that includes only these 2 stocks. What is the value-weighted rate of return for the index from time 0 to time 1? Choose the answer closest to the correct number. (C) Assume someone asked you calculate the equal-weighted return for a portfolio that included these 2 stocks. What is the equal-weighted return from time 0 to time 1?
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