Question: Problem 2-19 Consider the three stocks in the following table. Pt represents price at time t, and 0 represents shares outstanding at time t. Stock

 Problem 2-19 Consider the three stocks in the following table. Pt

Problem 2-19 Consider the three stocks in the following table. Pt represents price at time t, and 0 represents shares outstanding at time t. Stock C splits two-for-one in the last period. A B Pe 92 52 104 00 100 200 200 P1 97 47 114 01 100 200 200 P2 97 47 57 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.) Rate of retum % 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 c. Calculate the rate of return of the price-weighted index for the second period (t = 1 to 1=2). Rate of retum %

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