Question: Chapter 2 0 Saved Help Save & Exit Submit Check my work 4 Problem 2-19 (Algo) 10 points Consider the three stocks in the following


Chapter 2 0 Saved Help Save & Exit Submit Check my work 4 Problem 2-19 (Algo) 10 points Consider the three stocks in the following table. Pt represents price at time t, and et represents shares outstanding at time t. Stock C splits two-for-one in the last period. eBook A B Po 82 42 84 QO 100 200 200 Pi 87 37 94 01 100 200 200 P2 87 37 47 Q2 100 200 400 References Required: a. Calculate the rate of return on a price-weighted index of the three stocks for the first period (t = 0 to t= 1). (Do not round intermediate calculations. Round your answer to 2 decimal places.) Rate of return % Chapter 2 Saved Help Save & Exit Submit Check my work 4 b. What will be the divisor for the price-weighted index in year 2? (Do not round intermediate calculations. Round your answer to 2 decimal places.) 10 Divisor points eBook This is a numeric cell, so please enter numbers only. References c. Calculate the rate of return of the price-weighted index for the second period (t=1 to t= 2). Rate of return %
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