a. A B C Po 90 50 100 Qo 100 200 200 P₁ 95 45 110 Q₁ 100 200 200 P₂ 95 45 55 Q₂ 100 200 400 Calculate the rate of return on a price-weighted index of the three stocks for the first period (t=0 to t=1).
a. A B C Po 90 50 100 Qo 100 200 200 P₁ 95 45 110 Q₁ 100 200 200 P₂ 95 45 55 Q₂ 100 200 400 Calculate the rate of return on a price-weighted index of the three stocks for the first period (t=0 to t=1).
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
Consider the three stocks in the following table. ?? represents price at time t, and ?? represents shares outstanding at time t. Stock C splits two-for-one in the last period.
Transcribed Image Text:a.
A
B
C
Po
90
50
100
Qo
100
200
200
P₁
95
45
110
Q₁
100
200
200
P₂
95
45
55
Q₂
100
200
400
Calculate the rate of return on a price-weighted index of the three stocks for the first period (t=0
to t=1).
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