Consider the three stocks in the following table. P_t represents price at day t, and Q_t represents shares outstanding
Posted: Sun Apr 17, 2022 6:19 pm
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)
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)