Question: QUESTION B: The answer is 13.17%, but I need to know how to calculate it. 11. You are creating an index for the four following

QUESTION B: The answer is 13.17%, but I need to know how to calculate it. QUESTION B: The answer is 13.17%, but I need to know how

11. You are creating an index for the four following stocks: Stock ABC DEF GHI JKL Price, t=0 112 45 21 26 Price, t=1 102 50 26 30 Shares (million) 100 500 1,200 450 A What is the one day return for the index if it is price-weighted? B. What is the one day return for the index if it is market-weighted? C. Suppose that at the conclusion on t=1 trading day, stock ABC does a 2:1 stock split, what is the new divisor for your price-weighted index

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