Consider the three stocks in the following table. P_{t} represents price at time t, and Q_{t} represents shares outstanding at time t. Stock C splits two-for-one in the last period. |
P_{0} | Q_{0} | P_{1} | Q_{1} | P_{2} | Q_{2} | |
A | 88 | 100 | 93 | 100 | 93 | 100 |
B | 48 | 200 | 43 | 200 | 43 | 200 |
C | 96 | 200 | 106 | 200 | 53 | 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 percent=? B. An equally weighted index.= Rate of return percent=? |
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