Question

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.

	P0	Q0	P1	Q1	P2	Q2
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=?

Answer 1