splits two-tor-one in the last period. 90 P1 100 95 200 45 200 110 A B C Po 90 50 100 Rate of return Divisor Required: a. Calculate the rate of return on a price-weighted index of the three stocks for the first period (t=0 to t= 1). (Do not round intermediate calculations. Round your answer to 2 decimal places.) 4.16 % 2.34 Rate of return 01 100 200 200 b. What will be the divisor for the price-weighted index in year 2? (Do not round intermediate calculations. Round your answer to 2 decimal places.) P2 95 45 55 92 100 200 400 % c. Calculate the rate of return of the price-weighted index for the second period (t = 1 to t=2).
splits two-tor-one in the last period. 90 P1 100 95 200 45 200 110 A B C Po 90 50 100 Rate of return Divisor Required: a. Calculate the rate of return on a price-weighted index of the three stocks for the first period (t=0 to t= 1). (Do not round intermediate calculations. Round your answer to 2 decimal places.) 4.16 % 2.34 Rate of return 01 100 200 200 b. What will be the divisor for the price-weighted index in year 2? (Do not round intermediate calculations. Round your answer to 2 decimal places.) P2 95 45 55 92 100 200 400 % c. Calculate the rate of return of the price-weighted index for the second period (t = 1 to t=2).
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:splits two-tor-one in the last period.
00
P1
100
95
200
45
110
A
B
C
Po
90
50
100
Rate of return
Divisor
200
Rate of return
Required:
a. Calculate the rate of return on a price-weighted index of the three stocks for the first period (t=0 to t= 1). (Do not round
intermediate calculations. Round your answer to 2 decimal places.)
4.16 %
2.34
91
100
200
200
P2
95
45
55
b. What will be the divisor for the price-weighted index year 2? (Do not round intermediate calculations. Round your answer to 2
decimal places.)
%
92
100
200
400
c. Calculate the rate of return of the price-weighted index for the second period (t = 1 to t=2).
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