Consider the data for 3 stocks T=0. T=1 Price. Shares outst. Price A. 10. 200. 20 B. 20. 500. 20 C. 30. 600. 20 What is the single period return on the price weighted index constructed from the three stocks if stocks A and B were to split 2 for 1 and 4 for 1 respectively after period 0? Using a divisor of 3 for the pre split calculation A -12.50% B -13.33% C 0.00% D -10.00%
Consider the data for 3 stocks T=0. T=1 Price. Shares outst. Price A. 10. 200. 20 B. 20. 500. 20 C. 30. 600. 20 What is the single period return on the price weighted index constructed from the three stocks if stocks A and B were to split 2 for 1 and 4 for 1 respectively after period 0? Using a divisor of 3 for the pre split calculation A -12.50% B -13.33% C 0.00% D -10.00%
Chapter8: Risk And Rates Of Return
Section: Chapter Questions
Problem 10PROB
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9
Consider the data for 3 stocks
T=0. T=1
Price. Shares outst. Price
A. 10. 200. 20
B. 20. 500. 20
C. 30. 600. 20
What is the single period return on the price weighted index constructed from the three stocks if stocks A and B were to split 2 for 1 and 4 for 1 respectively after period 0? Using a divisor of 3 for the pre split calculation
A -12.50%
B -13.33%
C 0.00%
D -10.00%
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