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Using the data from the chart below, calculate the first-period rates of return on the following indexes of the three stocks: Assume the equally-weighted index
Using the data from the chart below, calculate the first-period rates of return on the following indexes of the three stocks:
Assume the equally-weighted index at time 0=100.
Calculate the geometric equally-weighted index at t=1.
Calculate the rate of return based on these two index numbers.
P(0) | Q(0) | P(1) | Q(1) | P(2) | Q(2) | |
A | 90 | 100 | 95 | 100 | 95 | 100 |
B | 50 | 200 | 45 | 200 | 45 | 200 |
C | 100 | 200 | 110 | 200 | 55 | 400 |
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