Consider the three stocks in the following table. P+ represents price at time t, and Qe represents shares outstanding at time t. Stock C splits two-for-one in the last period. Required Pe 81 41 82 le 100 200 200 P₁ 86 36 92 01 100 200 200 P₂ 86 36 46 Q₂ 100 200 400

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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Consider the three stocks in the following table. Pe represents price at time t, and Qe represents shares outstanding at time t
Stock C splits two-for-one in the last period.
Pe
81
41
82
lo
100
200
200
Rate of return
P₁
86
36
92
li
100
200
200
%
P₂
86
36
46
Required:
Calculate the first-period rates of return on the following indexes of the three stocks: (Do not round intermediate calculations.
Round your answers to 2 decimal places.)
a. A market value-weighted index
2₂
100
200
400
Transcribed Image Text:H Consider the three stocks in the following table. Pe represents price at time t, and Qe represents shares outstanding at time t Stock C splits two-for-one in the last period. Pe 81 41 82 lo 100 200 200 Rate of return P₁ 86 36 92 li 100 200 200 % P₂ 86 36 46 Required: Calculate the first-period rates of return on the following indexes of the three stocks: (Do not round intermediate calculations. Round your answers to 2 decimal places.) a. A market value-weighted index 2₂ 100 200 400
b. An equally weighted index
Rate of return
%
Transcribed Image Text:b. An equally weighted index Rate of return %
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