Question: Using the data from the chart below, calculate the first-period rates of return on the following indexes of the three stocks: Assume the equally-weighted index

Using the data from the chart below, calculate the first-period rates of return on the following indexes of the three stocks:

Assume the equally-weighted index at time 0=100.

Calculate the geometric equally-weighted index at t=1.

Calculate the rate of return based on these two index numbers.

P(0)

Q(0)

P(1)

Q(1)

P(2)

Q(2)

A

90

100

95

100

95

100

B

50

200

45

200

45

200

C

100

200

110

200

55

400

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