Consider the three stocks in the following table. Pt 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 88 48 96 Rate of return 90 100 200 200 P1 93 43 106 Rate of return b. An equally weighted index 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 % 91 100 200 200 % P2 93 43 53 92 100 200 400
Consider the three stocks in the following table. Pt 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 88 48 96 Rate of return 90 100 200 200 P1 93 43 106 Rate of return b. An equally weighted index 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 % 91 100 200 200 % P2 93 43 53 92 100 200 400
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: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
88
8886
48
96
Rate of return
00
100
200
200
P1
93
43
106
Rate of return
b. An equally weighted index
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
%
01
100
%
200
200
P2
93
43
53
02
100
200
400
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