Question: How to do the question C? Homework 1 Saved Help Save & Exit Submit Check my work 2. Consider the three stocks in the following

 How to do the question C? Homework 1 Saved Help Save

How to do the question C?

Homework 1 Saved Help Save & Exit Submit Check my work 2. Consider the three stocks in the following table. Pt represents price at time t, and Qt represents shares outstanding at time to Stock C splits two-for-one in the last period. 16 66 points B g 81 41 82 0 P1 100 86 200 36 200 92 01 190 280 200 P2 86 36 46 02 100 200 400 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.) eBook Rate of return 4.90 % Print References b. What will be the divisor for the price-weighted index in year 27 (Do not round intermediate calculations. Round your answer to 2 decimal places.) Divisor 2.36 c. Calculate the rate of return of the price-weighted index for the second period (t=1 to t=2). Rate of retum (18) %

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