An equally weighted index rate of return

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Reference no: EM131948911

Consider the three stocks in the following table. Pt represents price at time t, and Qt represents shares outstanding at time t. Stock C splits two-for-one in the last period. P0 Q0 P1 Q1 P2 Q2 A 100 100 105 100 105 100 B 60 200 55 200 55 200 C 120 200 130 200 65 400 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 % b. An equally weighted index Rate of return %

Reference no: EM131948911

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