Question: Use the information below to answer the question Consider the three stocks in the following table. P t represents price at time t , and

Use the information below to answer the question

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 (t=2).

P0

Q0

P1

Q1

P2

Q2

A

91

100

96

100

96

100

B

51

200

46

200

46

200

C

102

200

112

200

56

400

Question:

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 4 decimal places.)

Please answer numerical questions using decimal number NOT in % (e.g., enter 0.1025 instead of 10.25%)

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Question 35 pts

Use the information below to answer the question

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 (t=2).

P0

Q0

P1

Q1

P2

Q2

A

91

100

96

100

96

100

B

51

200

46

200

46

200

C

102

200

112

200

56

400

Question:

What will be the divisor for the price-weighted index in year 2? (Do not round intermediate calculations. Round your answer to 4 decimal places.)

Please answer numerical questions using decimal number NOT in % (e.g., enter 0.1025 instead of 10.25%)

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