Question: QUESTION 5 Consider the three stock in the following table. P t represents price at time t, and Q t represents shares outstanding at time

QUESTION 5

  1. Consider the three stock 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 90 100 95 100 95 100
    B 50 200 45 200 45 200
    C 100 200 110 200 55 400

    Calculate the rate of return for the second period (t=1 to t=2) on a market-value-weighted index. (Round your answer to the fourth decimal, i.e. 0.0000)

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