Consider the three stocks in the following table. Pt represents price at time t and...
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Consider the three stocks in the following table. Pt represents price at time t and et represents shares outstanding at time t Stock C splits two-for-one in the last period. Required: a. Calculate the rate of return on a price-weighted index of the three stocks for the first period ( t=0 to t=1 ). (Do not round intermedlate calculations. Round your answer to 2 decimal places.) b. What will be the divisor for the priceweighted index in year 2 ? (Do not round intermediate calculations. Round your answer to 2 decimal places) c. Calcutate the rate of return of the price-weighted index for the second period (t=1 to t=2). Consider the three stocks in the following table. Pt represents price at time t and et represents shares outstanding at time t Stock C splits two-for-one in the last period. Required: a. Calculate the rate of return on a price-weighted index of the three stocks for the first period ( t=0 to t=1 ). (Do not round intermedlate calculations. Round your answer to 2 decimal places.) b. What will be the divisor for the priceweighted index in year 2 ? (Do not round intermediate calculations. Round your answer to 2 decimal places) c. Calcutate the rate of return of the price-weighted index for the second period (t=1 to t=2)
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