1. Consider the three stocks in the following table. Pt represents price at time t, and Qrepresents shares outstanding at time t. Stock C splits two for one in the last period. A Po 90 50 100 Qo 100 200 200 P1 95 45 110 Q1 100 200 200 P2 95 45 55 Q2 100 200 400 B 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 t = 2). d. Calculate the first-period rates of return on a market-value-weighted index. e. Calculate the first-period rates of return on an equally-weighted index. = =