Consider the three stocks in the following table. P_t represents price at day t, and Q_t represents shares outstanding

Business, Finance, Economics, Accounting, Operations Management, Computer Science, Electrical Engineering, Mechanical Engineering, Civil Engineering, Chemical Engineering, Algebra, Precalculus, Statistics and Probabilty, Advanced Math, Physics, Chemistry, Biology, Nursing, Psychology, Certifications, Tests, Prep, and more.
Post Reply
answerhappygod
Site Admin
Posts: 899603
Joined: Mon Aug 02, 2021 8:13 am

Consider the three stocks in the following table. P_t represents price at day t, and Q_t represents shares outstanding

Post by answerhappygod »

Consider the three stocks in the following table. P_t represents
price at day t, and Q_t represents shares outstanding at day
t. Stock C splits two-for-one in the day 2.
P_0 Q_0
P_1 Q_1 P_2
Q_2
A 80 100
90 100 100
100
B 40 200
50 200 50
200
C 90 200
100 200 50
400
Calculate the rate of return of the value-weighted index of the
three stocks for the day 2. (5 Marks)
Join a community of subject matter experts. Register for FREE to view solutions, replies, and use search function. Request answer by replying!
Post Reply