Question: Problem 2-12 Consider the three stocks in the following table. Pe represents price at time, and 0t represents shares outstanding at time . Stock splits
Problem 2-12 Consider the three stocks in the following table. Pe represents price at time, and 0t represents shares outstanding at time . Stock splits two for one in the last period. A 70 65 130 20 80 160 160 P1 80 60 140 0 B0 160 160 P2 80 60 75 80 160 320 Calculate the first-period rates of return on the following indexes of the three stocks (t =0 to = 1): (Do not round intermediate calculations. Round your answers to 2 decimal places.) a. A market value-weighted index. Rate of return % b. An equally weighted index. Rate of retum %
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