Question 2: Consider three stocks in the following table. P, repsents price at time t, and Q, represents shars outstanding at time t. e 3 Po A $ 125.00 B $ 65.00 C $ 200.00 Qo P1 100 $ 135.00 200 $ 59.00 400 $ 214.00 Q 100 200 400 a. Calculate the rate of return on the price weighted index of the three stocks from t=0 to t=1. (3 points) 1 Index Value at time (0) = Index Value at time (1) = $ $ 130.00 136.00 Rate of return = 0.046153846 or 4.62% b. If stock C has a two-for-one stock split at t =1, what should be the new divisor at end of period t = 1? (3 points) Index Value piror to stock split = Index Value after stock split = New divisor =