Question: question B and C please, thank you! Consider the three stocks in the following table. Pt represents price at time t, and Qt represents shares

question B and C please, thank you!
Consider the three stocks 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. A B C PO 91 51 102 Q0 100 200 200 R 96 46 112 Q1 100 200 200 P2 96 46 56 100 200 400 Required: a. Calculate the rate of return on a price-weighted index of the three stocks for the first period (t= 0 to t = 1). (Do not round intermediate calculations. Round your answer to 2 decimal places.) Rate of return 4.11: % b. What will be the divisor for the price-weighted index in year 2? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Divisor c. Calculate the rate of return of the price-weighted index for the second period (t=1 to t= 2). Rate of return %
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
