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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- Winter '10
- Winter Quarter, DePaul University, price-weighted index, market-value-weighted index