Question: I dont know to solve it 2. Consider the three stocks in the following table showing stock prices on Day 0 and Day 1.N represents
I dont know to solve it 2. Consider the three stocks in the following table showing stock prices on Day 0 and Day 1.N represents the number of shares outstanding Stock (Day 0) (Day 1) Stock Price Stock Price 20 15 25 300 CSCO INTC MSFT 15 250 23 a. Calculate the rate of return on a price weighted index of the three stocks for the b. Calculate the rate of return on a value weighted index of the three stocks for the first day assuming a divisor of 2.40 first day assuming a divisor of 100. MSFT splits its stock two-for-one on day 2 while the other two stock prices remain the same, recalculate the value of each index on day 2. Justify your results. 2. Consider the three stocks in the following table showing stock prices on Day 0 and Day 1.N represents the number of shares outstanding Stock (Day 0) (Day 1) Stock Price Stock Price 20 15 25 300 CSCO INTC MSFT 15 250 23 a. Calculate the rate of return on a price weighted index of the three stocks for the b. Calculate the rate of return on a value weighted index of the three stocks for the first day assuming a divisor of 2.40 first day assuming a divisor of 100. MSFT splits its stock two-for-one on day 2 while the other two stock prices remain the same, recalculate the value of each index on day 2. Justify your results
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