Pao =$10, Peo =$150. At t=1, A up by 10% and B down by 10%...

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Pao =$10, Peo =$150. At t=1, A up by 10% and B down by 10% so Pai =$11, PB1 =$135. Let t=0 value-weighted index = 100. 1. Calculate the value-weighted index at t=1. 2. The t=1 value-weighted index is a weighted average of the two price ratios. Show what the weights are

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