Consider the three stocks in the following table. Pt represents the price at the end of period t and Qt is the number of shares outstanding. Stock C splits 3:1 during period 2.
P0 | Q0 | P1 | Q1 | P2 | Q2 | |
A | $ 115.00 | 150.00 | $ 125.00 | 150.00 | $ 128.00 | 150.00 |
B | $ 66.00 | 400.00 | $ 72.00 | 400.00 | $ 77.00 | 400.00 |
C | $ 35.00 | 200.00 | $ 45.00 | 200.00 | $ 19.00 | 600.00 |
Calculate the price-weighted index return for the period ending in 2. Enter your answer rounded to two decimal places. Do not enter % in the answer box. For example, if your answer is 0.12345 or 12.345% then enter as 12.35 in the answer box.
IV(i) = [P(i)] / n
IV1 = (125 + 72 + 45) / 3 = 242/3 = 80.67
IV1 = (128 + 77 + 19) / 3 = 224/3 = 74.67
Return = [IV1 / IV0] - 1 = [74.67 / 80.67] - 1 = 0.9256 - 1 = -0.0744, or -7.44%
Consider the three stocks in the following table. Pt represents the price at the end of...
Consider the three stocks in the following table. Pt represents the price at the end of period t and Qt is the number of shares outstanding. Stock C splits 3:1 during period 2. P0 Q0 P1 Q1 P2 Q2 A $ 16.00 150.00 $ 18.00 150.00 $ 21.00 150.00 B $ 32.00 400.00 $ 40.00 400.00 $ 42.00 400.00 C $ 50.00 200.00 $ 63.00 200.00 $ 29.00 600.00 Calculate the price-weighted index return for the period ending in 2....
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