Consider the three stocks in the following table. Pt represents price at time t, and ot represents shares outstanding at time t. Stock C splits two-for-one in the last period. A B с PO 84 44 88 Rate of return 20 100 200 200 Rate of return b. An equally weighted index P1 89 39 98 Required: 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 % 01 100 200 200 % P2 89 39 49 22 100 200 400

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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Consider the three stocks in the following table. Pt represents price at time t, and ot represents
shares outstanding at time t. Stock C splits two-for-one in the last period.
A
B
с
Po
84
44
88
Rate of return
20
100
200
200
Rate of return
b. An equally weighted index
P1
89
39
98
Required:
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
%
01
100
200
200
%
P2
89
39
49
02
100
200
400
Transcribed Image Text:Consider the three stocks in the following table. Pt represents price at time t, and ot represents shares outstanding at time t. Stock C splits two-for-one in the last period. A B с Po 84 44 88 Rate of return 20 100 200 200 Rate of return b. An equally weighted index P1 89 39 98 Required: 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 % 01 100 200 200 % P2 89 39 49 02 100 200 400
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