Question: Please solve NOT using excel. Price-Weighted Index Consider the three stocks in the following table. P, represents the price at time t, and Qt (million
Please solve NOT using excel.
Price-Weighted Index Consider the three stocks in the following table. P, represents the price at time t, and Qt (million shares) represents a million shares outstanding at time t. July 2020 August 2020 September 2020 Components Qo P1 Q1 P2. Q2 GS 200 400 205 400 200 400 HD 250 1,000 260 1,000 250 1,000 AAPL 540 3,000 140 12,000 15Y 12,000 Assume a price-weighted index has three components: GS, HD, and AAPL. This index is started to construct in July 2020 (initial divisor = 3.) In Aug 2020, AAPL split share 4-for-1. . 1 What is the return of this price-weighted index between Aug and Sep 2020
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