A market valueweighted index rate of return an equally


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 %

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Financial Management: A market valueweighted index rate of return an equally
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