$15$

Problem $2-11$

Consider the three stocks in the following table. $P_t$ represents price at time $t,$ and $Q_t$ represents shares outstanding at time $t.$ Stock $C$

splits two for one in the last period.

a$.$ Calculate the rate of return on a price$-$weighted index of the three stocks for the first period $(t=0$ to $t=1).($Do not round

intermediate calculations. Round your answer to $2$ decimal places.$)$

Rate of return

b$.$ Calculate the new divisor for the price$-$weighted index in year $2.($Do not round intermediate calculations. Round your answer to $2$

decimal places.$)$

Problem $2-11$

Consider the three stocks in the following table. $P_t$ represents price at time $t,$ and $Q_t$ represents shares outstanding at time $t.$ Stock $C$

splits two for one in the last period.

a$.$ Calculate the rate of return on a price$-$weighted index of the three stocks for the first period $(t=0$ to $t=1).($Do not round

intermediate calculations. Round your answer to $2$ decimal places.$)$

b$.$ Calculate the new divisor for the price$-$weighted index in year $2.($Do not round intermediate calculations. Round your answer to $2$

decimal places.$)$

c$.$ Calculate the rate of return for the second period $(t=1$ to $t=2).($Round your answer to $2$ decimal places.$)$