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# 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 a Calculate the rate

Consider the three stocks in the following table. P_t represents price at time t, and Q_t represents shares outstanding at time t. Stock C splits two for one in the last period. 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 2 decimal places. Omit the "%" sign in your response.) Rate of return % b. Calculate the new divisor for the price-weighted index in year 2. (Do not round intermediate calculations. Round your answer to 2 decimal places.) New divisor c. Calculate the rate of return for the second period (t = 1 to t = 2) (Omit the "%" sign n your response.) Rate of return 0 %

Apr 11 2020 View more View Less Subscribe To Get Solution