Using the information answer the following questions.

a) First assuming value-weighted index at time 0=100, calculate the value-weighted index at t=1. Then calculate the rate of return for the second period.

b) First, assuming the equally-weighted index at time 0=100, calculate the arithmetic equally-weighted index at t=1. Then calculate the rate of return based on these two index numbers.

c) First, assuming the equally-weighted index at time 0=100, calculate the geometric equally-weighted index at t=1. Then calculate the rate of return based on these two index numbers.

11. Consider the three stocks in the following table. P, represents price at time t, and Q, represents shares outstanding at time t. Stock C splits two for one in the last period. Q 90 100 50 100 200 200 95 45 110 200 100 200 400 100 200 55 a. Calculate the rate of return on a price-weighted index of the three stocks for the first period (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 for the second period (t = 1 to 1 = 2). 11. Consider the three stocks in the following table. P, represents price at time t, and Q, represents shares outstanding at time t. Stock C splits two for one in the last period. Q 90 100 50 100 200 200 95 45 110 200 100 200 400 100 200 55 a. Calculate the rate of return on a price-weighted index of the three stocks for the first period (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 for the second period (t = 1 to 1 = 2)