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00 Consider the three stocks in the following table. Pt represents price at time t, and Qt represents shares outstanding at time t Stock C

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00 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. 2.94 points A B C Pe 80 85 35 Qe 275 650 950 P1 85 80 50 21 275 650 950 P2 Q2 85 275 80 650 25 1,900 eBook a. Calculate the rate of return on a price-weighted index of the three stocks for the first period (t = 0 to t= 1). (Do not round intermediate calculations. Round your answer to 2 decimal places.) Print Rate of return % References b. Calculate the new divisor for the price-weighted index in year 2. (Do not round intermediate calculations. Round your answer to 2 decimal places.) New divisor c. Calculate the rate of return for the second period (t=1 to t=2). (Round your answer to 2 decimal places.) Rate of return %

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