Question: solve for c. I only need the answer and explanation for problem c. Problem 2-19 (Algo) Consider the three stocks in the following table. Pt
Problem 2-19 (Algo) Consider the three stocks in the following table. Pt represents price at time t, and Qe represents shares outstanding at time t. Stock C splits two-for-one in the last period. B c 96 56 112 20 100 200 200 Pi 101 51 122 21 100 200 200 P2 101 51 61 02 100 200 400 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.) Rate of return % 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 t= 2) .. Rate of return %
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