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. |
P0 | Q0 | P1 | Q1 | P2 | Q2 | |
A | 92 | 100 | 97 | 100 | 97 | 100 |
B | 52 | 200 | 47 | 200 | 47 | 200 |
C | 104 | 200 | 114 | 200 | 57 | 400 |
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. |
Rate of return | % |
b. | An equally weighted index. |
Rate of return | % |
Get Answers For Free
Most questions answered within 1 hours.