STATISTICS F/BUSINESS+ECONOMICS-TEXT
STATISTICS F/BUSINESS+ECONOMICS-TEXT
13th Edition
ISBN: 9781305881884
Author: Anderson
Publisher: CENGAGE L
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Chapter 20, Problem 22E
To determine

Develop a Male Shaver Expense Index based on weighted price relatives for Year 11.

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Suppose that you would like to create composite indexes from three stocks: stk1, stk2, stk3. Their stock prices (Pt) and total shares outstanding (Qt) from day 0 to day 1 are shown as follows: stk3 splits two-for-one in day 1.     P0 Q0 P1 Q1 stk1 40 250 50 250 stk2 50 100 50 100 stk3 60 150 50 300   Which answer is the closest value to the rate of return on a price-weighted index of the three stocks?   A. 20%   B. 25%   C. 30%   D. 35%
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