Problem $2-19($Algo$)$

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.

P$0$ Q$0$ P$1$ Q$1$ P$2$ Q$2$

A $841008910089100$

B $442003920039200$

C $882009820049400$

Required:

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.$)$

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.$)$

c$.$ Calculate the rate of return of the price$-$weighted index for the second period $($t $=1$ to t $=2).$