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 (t-2) 2 105 100 200 200 100 200 200 100 200 400 105 100 60 120 130 65 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 3.58 % b. What will be the divisor for the price-weighted index in year 2? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Divisor 52

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