Question: Ive done question 11. Just need help with 12. 11. Consider the three stocks in the following table. P, represents price at time t, and
Ive done question 11. Just need help with 12. 11. Consider the three stocks in the following table. P, represents price at time t, and Q, represents 21 22. shares outstanding at time t. Stock C splits two for one in the last period. 02 100 200 200 100 90 50 100 100 200 200 95 45 110 95 45 400 a. Calculate the rate of return on a price-weighted index of the three stocks for the first period (t = 0 to t = 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 tor 2). 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. 12
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