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Unformatted text preview: B) What must happen to the divisor for the price-weighted index in year 2? What happens to the value of the index after the stock split? C) Calculate the first-period rates of return (from t=0 to t=1) on a market-value-weighted index. D) Calculate the rate of return for the second period (t=1 to t=2) on a market-value-weighted index. (5 points)...
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This note was uploaded on 09/26/2011 for the course FIN 334 taught by Professor Fin334 during the Winter '10 term at Ill. Chicago.
- Winter '10