Using the data in the chart below calculate the rates of return on a:

a. value weighted index

b. price weighted index.

Assume all three stocks would be in each index, and calculate the return of the index over the first period (P0 to P1).

c. What would be the new divisor at time period 0 if stock A had a 3 for 1 stock split

d. What would be the holding period return of each stock from P0 to P2. Assume Stock B has a $5 dividend, and the other stocks do not (ignore number of shares for this part)

	P(0)	Q(0)	P(1)	Q(1)	P(2)	Q(2)
A	90	100	95	100	95	100
B	50	200	45	200	45	200
C	100	200	110	200	55	400