2. Use the chart below to answer the following questions. T=0 T=1 Stock Price Quantity Price Quantity A 90 100 95 100 B 45 200 50 200 30 200 30 200 T= 2 Price Quantity 98 100 50 200 10 400 a. Create a value (VW) and price weighted index (PW) using the three stocks. Assume each stock will be in the index and calculate the return of each from t= 1 tot = 2. (There should be 2 answers here. b. What would be the new divisor for the price weighted index at time period 0 if stock C had a 2 for 1 stock split c. What is the holding period return for each stock from time 0 to time 2. Assume Stock B has a $5 dividend and the other stocks do not. (Ignore the number of shares for this question only) A B C D E F F G H H I J 90 q2 Mkt Cap w 90 45 30 165 p1 100 200 200 500 q1 95 50 30 175 p2 100 200 200 500 98 50 10 158 100 200 400 700 Mkt Weight Price Weight Stock Return 1 2 3 A 4 B 5 C 6 Sum 7 8 9 10 Part A/B 11 Weights 12 13 A 14 B 15 C 16 17 Mkt Index Return 18 Price Index Return 19 20 21 Part C 22 Original Index 23 24 25 A 26 B 27 C 28 Sum 29 30 31 Solution 55 New Prices