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
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.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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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

Transcribed Image Text:b. An equally weighted index
Rate of return
%
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