Question: 1. An analyst considers different indices that could be constructed from stocks A, B, and C given the information below. In particular, the analyst considers

 1. An analyst considers different indices that could be constructed from

1. An analyst considers different indices that could be constructed from stocks A, B, and C given the information below. In particular, the analyst considers all 6 combinations given by the 3 different weighting methods (value-weighted, equally-weighted, and price-weighted) and the 2 different return definitions (price return, total return). Stock Beginning-of- End-of-period # Shares outstanding Dividends per period price price throughout period share A 10.00 12.00 100 1.00 B 20.00 20.50 100 0.50 C 30.00 30.00 200 0.30 Which of the 6 indices would yield the highest return for the period? Which of the 6 indices would yield the lowest return

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