Question: Please solve and EXPLAIN CAREFULLY (Especially ITEM B) I am confused with the stock split. Can you include any rules or specific formula for b?

 Please solve and EXPLAIN CAREFULLY (Especially ITEM B) I am confused

Please solve and EXPLAIN CAREFULLY (Especially ITEM B) I am confused with the stock split. Can you include any rules or specific formula for b? Also please solve C and D. EXPLAIN IN DETAIL OTHERWISE ABSTAIN FROM ANSWERING. Thanks!

1. 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. Qo 90 50 100 P1 95 45 110 Q1 100 200 200 100 200 200 Q2 100 200 400 | P2 95 45 55 b. What must happen to the divisor for the price-weighted index in year 2? C. Calculate the rate of return for the second period (t = 1 to t = 2). d. Using the data in the previous problem, calculate the first-period rates of return on the following indexes of the three stocks: 1) A market value-weighted index. 2) An equally weighted index

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