tv - x 6 + 2 5 Homework Assignment x B pdf.pdf pdf-1.pdf 0 0 file:///C:/Users/ayesha/Documents/HRM/Homework%20Assignment%201.pdf of 6 lo + O Fit to page CD Page view A Read aloud L Add notes 6 H EB 6 4. (15 pts) 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. PO QOPQiP2Q2 $90 100 $95 100 $95 100 STOCK A STOCK B STOCK C $50 $100 200 200 $45 $110 200 2 00 $45 $55 200 400 a) Calculate the rate of return on a price-weighted index of the three stocks for the first period (from t=0 to t= 1). b) What must happen to the divisor for the price-weighted index in year 2? c) Calculate the rate of return of the price-weighted index for the second period (from t = 1 to t=2)