Question: variables =6 QUESTION 2 0.5 points Consider the three stocks in the following table. Pt represents the price at time and ot represents a milion
QUESTION 2 0.5 points Consider the three stocks in the following table. Pt represents the price at time and ot represents a milion shares outstanding at time t. July 2020 Aug-20 Sep-20 Po Qo P1 Q P2 Q2 GS 200 400 210 400 200 400 HD 225 1,000 255 1,000 240 1.000 AAPL 530 3,000 14X 12,000 16Y 12.000 In Aug 2020, AAPL Split share 4-for 1 (1) Price Weighted index Assume a price weighted index has three components: GS. HD, and AAPL. This Index started to construct in July 2020. What is the return of this price weighted Index between Aur and Sep 2020? (2) Market Value-Weighted Index Assume a market value weighted index has three components GS, HD, and AAPL: This index is started to construct in July 2020 (initial value=5100) What is the return of this market value weighted index between Aug and Sep 20207
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