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 (t=2).
|
P0 |
Q0 |
P1 |
Q1 |
P2 |
Q2 |
|
|
A |
91 |
100 |
96 |
100 |
96 |
100 |
|
B |
51 |
200 |
46 |
200 |
46 |
200 |
|
C |
102 |
200 |
112 |
200 |
56 |
400 |
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 intermediate calculations. Round your answer to 4 decimal places.)
B) What will be the divisor for the price-weighted index in year 2? (Do not round intermediate calculations. Round your answer to 4 decimal places.)
C) For a market value–weighted index, calculate the first-period rates of return on the indexes of the three stocks: (Do not round intermediate calculations. Round your answers to 4 decimal places.)
D) For an equally weighted index, calculate the first-period rates of return on the following indexes of the three stocks: (Do not round intermediate calculations. Round your answers to 4 decimal places.)
