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The three stocks below were selected to expedite the computations because the three corporations (1) issued no additional shares and (2) had no stock
The three stocks below were selected to expedite the computations because the three corporations (1) issued no additional shares and (2) had no stock dividends or splits. Cash dividend payments also should be ignored in the computations. Stock Total Shares Outstanding on Both Base Period Market Price July 1, 2015 More recent period market price July 1, 2020 Percentage Price change Dates ABC 60,000 $30 $45 MNO 20,000 $25 $80 ? XYZ 90,000 $65 $85 ? a. Calculate the values of three different stock price indexes for the three common stocks listed above for the time period from July 1, 2015, to July 1, 2020. b. If the three-stock index is value-weighted, what will its value be on July 1, 2020? [SHOW DETAILED STEP-BY-STEP SOLUTION]
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