0 file:///C:/Users/ayesha/Documents/HRM/Homework%20Assignment%201.pdf 2 0 of 6 lo - + Fit to page CD Page view A Read aloud b Add notes 6 F & 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. - STOCK A STOCKB STOCK C Po $90 $50 $100 Qi 1 00 2 00 200 Pi $95 $45 $110 Q 100 200 2 00 P2 $95 $45 $55 Q2 100 200 400 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)