-Based on the Information Given,for a Price-Weighted Index of the Three

question 57

Essay

-Based on the information given,for a price-weighted index of the three stocks calculate:
a.the rate of return for the first period (t = 0 to t = 1).
b.the value of the divisor in the second period (t=2).Assume that Stock A had a 2-1 split during this period.
c.the rate of return for the second period (t = 1 to t = 2).

---

Definitions:

Economic Sense

The logic or rationale behind economic decisions or policies, often evaluated in terms of benefits versus costs.

Progressed

Advanced or moved forward in development or improvement.

Nations

Vast collectives of individuals linked through shared ancestry, historical background, cultural practices, or linguistic similarities, residing in a specific nation or region.

Real GDP

The calculation of a nation's economic production, corrected for changes in prices due to inflation or deflation, to accurately represent the actual worth of the produced goods and services.