Question: 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
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. P0 Q0 P1 Q1 P2 Q2 A 75 85 85 85 85 85 B 70 170 65 170 65 170 C 140 170 145 170 75 340 Calculate the first-period rates of return on the following indexes of the three stocks (t = 0 to t = 1): (Do not round intermediate calculations. Round your answers to 2 decimal places.)
a. A market-value-weighted index. %
b. An equally weighted index. %
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
