Consider the three stocks in the following table. Pe represents price at time t, and Qt represents shares outstanding at time t Stock C splits two-for-one in the last period. A B C Pe 97 57 114 Co 100 200 200 P1 102 52 124 91 100 200 200 P2 102 52 62 22 100 200 400 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 Answer is complete but not entirely correct. Rate of return 3.70%
Consider the three stocks in the following table. Pe represents price at time t, and Qt represents shares outstanding at time t Stock C splits two-for-one in the last period. A B C Pe 97 57 114 Co 100 200 200 P1 102 52 124 91 100 200 200 P2 102 52 62 22 100 200 400 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 Answer is complete but not entirely correct. Rate of return 3.70%
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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Vijay
Transcribed Image Text:Consider the three stocks in the following table. P+ represents price at time t, and Qt represents shares outstanding at time t. Stock C
splits two-for-one in the last period.
A
B
C
Po
97
57
114
20
100
200
200
P1
102
52
124
Rate of return
91
100
200
200
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
X Answer is complete but not entirely correct.
3.70 x %
P2
102
52
62
b. An equally weighted index
22
100
200
400
Answer is complete but not entirely correct.
Rate of return
(1947) X%
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