Question: Consider the three stocks in the following table. Pt represents price at time t, and Qt represents shares outstanding at time t. Stock C splits

 Consider the three stocks in the following table. Pt represents price

Consider the three stocks in the following table. Pt represents price at time t, and Qt represents shares outstanding at time t. Stock C splits two for one in the last period. (Leave no cells blank - be certain to enter "O" wherever required.) B Po 50 105 85 20 325 250 550 P1 55 100 90 Q1 325 250 550 P2 55 100 45 Q2 325 250 1,100 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.) New divisor c. Calculate the price-weighted index for the second period (t = 1 to t= 2). Rate of return %

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