Question: 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

 Consider the three stocks in the following table. Pt represents price
at time t, and Qt represents shares outstanding at time t. Stock

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. 40 ? B Po 93 53 106 20 100 200 200 P1 98 48 116 01 100 200 200 O CON UA P2 98 48 58 22 100 200 400 28.13 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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