Problem:
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 90 100 95 100 95 100
- B 50 200 45 200 45 200
- C 100 200 110 200 55 400
Required:
Question 1: Calculate a Price-Weighted Index for stocks A, B, and C for all time periods
Question 2: Calculate the Returns for Each Period for Part A
Question 3: What is the denominator value of the Equal-Weighted Index for all time periods?
Question 4: Calculate a Value-Weighted Index for stocks A, B, and C for all time periods
Question 5: Calculate the Returns for Each Period for Part D
Note: Please describe comprehensively and provide step by step solution.