Using the data in the chart, calculate the first-period rates of return on the following indexes of the three stocks:

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
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  1. Using the data in the chart, calculate the first-period rates of return on the following indexes of the three stocks:  
  1. A market-value-weighted index.
  2. An equally weighted index.

stocks 

P0 

Q

P

Q

P2 

Q

 90 

100 

95 

100 

95 

100 

50 

200 

45 

200 

45 

200 

100 

200  

110 

200 

55 

400 

(Pt represents price at time t, and Qt represents shares outstanding at time t.)

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