Question: Use the following table to answer Q5-7. Please note Stock C has a 3-for-1 stock split at time 1. Stock Po P2 $ 90 $

Use the following table to answer Q5-7. Please note Stock C has a 3-for-1 stock split at time 1. Stock Po P2 $ 90 $ 50 $ 100 $ 95 $ 45 120 $ 105 $ 40 $ 45 5. Assume Index PW is a price-weighted index that track the performance of the three stocks. Calculate the rate of return of PW (a) from time 0 to time 1. (b) from time 1 to time 2. (Hint: firstly, calculate the new divisor after the split.) 6. Calculate the equal weighted rate of return of the three stocks from time 1 to time 2
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