1 50 points eBook References Problem 2-19 (Algo) Consider the three stocks in the following table. Pt represents price at time t, and Qt represents shares outstanding at time splits two-for-one in the last period. A B C Po 95 55 110 Rate of return Divisor 00 100 200 200 P1 100 50 120 Rate of return Required: 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.) 3.85 % 01 100 200 200 P2 100 50 60 b. What will be the divisor for the price-weighted index in year 2? (Do not round intermediate calculations. Round your ans decimal places.) % 92 100 200 400 c. Calculate the rate of return of the price-weighted index for the second period (t=1 to t= 2).

Consider the three stocks in the following table. Pt represents price at time t, and Qt represents shares outstanding at time splits two-for-one in the last period. Required: 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. What will be the divisor for the price-weighted index in year 2? (Do not round intermediate calculations. Round your an decimal places.) c. Calculate the rate of return of the price-weighted index for the second period (t=1 to t=2). Consider the three stocks in the following table. Pt represents price at time t, and Qt represents shares outstanding at time splits two-for-one in the last period. Required: 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. What will be the divisor for the price-weighted index in year 2? (Do not round intermediate calculations. Round your an decimal places.) c. Calculate the rate of return of the price-weighted index for the second period (t=1 to t=2)