Question: 1. Based on the information provided in the following table, please answer the questions given below. Stock A Po $70 Qo Pi Qi P:

1. Based on the information provided in the following table, please answer the questions given below. Stock A Po $70 Qo Pi Qi P: Q 200 $72 200 $36 400 Stock B $85 500 $81 500 Stock C $105 500 $81 300 $98 300 $98 300 a. Based on a price-weighted index constructed using the information provided above, what is the rate of return for the first period (t = 0 to t = 1)? b. Based on a value-weighted index constructed using the information provided above, what is the rate of return for the first period (t = 0 to t = 1)? c. Based on an equally-weighted index constructed using the information provided above, what is the rate of return for the first period (t=0 tot 1)? [12 Marks]
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
