Question: Problem 2-11 Consider the three stocks in the following table. Pt represents price at time t, and Qt represents shares outstanding at time t. Stock

 Problem 2-11 Consider the three stocks in the following table. Pt

Problem 2-11 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. A B c Pe 100 70 90 ge 300 400 400 P1 105 65 100 Q1 300 400 400 P2 105 65 50 22 300 400 800 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 %

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