c. Calculate the rate of return of the price-weighted index for the second period (t = 1 to t = 2).
 

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Consider the three stocks in the following table. Pt represents price at time t, and Qt represents shares outstanding at time t. Stock C splits two-for-one in the last period. A B C Po 88 48 96 Q0 100 200 200 P1 93 43 106 Q1 100 200 200 P2 93 43 53 Q2 100 200 400 Consider the three stocks in the following table. Pt represents price at time t, and Qt represents shares outstanding at time t. Stock C splits two-for-one in the last period. A B C Po 88 48 96 Q0 100 200 200 P1 93 43 106 Q1 100 200 200 P2 93 43 53 Q2 100 200 400

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n Index Valuet1 i1 Price n 93 43 106 3 242... View the full answer