Question: 12. Using the data in the previous problem, calculate the first-period rates of return on the following indexes of the three stocks: a. A market
12. Using the data in the previous problem, calculate the first-period rates of return on the following indexes of the three stocks: a. A market value-weighted index. b. An equally weighted index. 11. Consider the three stocks in the following table. P, represents price at time I, and Q, represents shares outstanding at time 1. Stock C splits two for one in the last period. Q0 P 01 P2 Q2 90 100 95 100 95 100 50 200 45 200 45 200 200 110 200 55 400 a. Calculate the rate of return on a price-weighted index of the three stocks for the first period (1 = 0 to 1 = 1). b. What must happen to the divisor for the price-weighted index in year 2? c. Calculate the rate of return for the second period (t = 1 to 1 = 2). A B 100 6 PARTI Introduction 12. Using the data in the previous problem, calculate the first-period rates of return on the following indexes of the three stocks; a. A market value-weighted index. b. An equally weighted index
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