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11. Consider the three stocks in the following table. Pt represents price at time t, and ot represents shares outstanding at time t. Stock C
11. Consider the three stocks in the following table. Pt represents price at time t, and ot represents shares outstanding at time t. Stock C splits two-for-one in the last period. PO 80 40 80 20 100 200 200 85 35 90 01 100 200 200 P202 85 100 200 400 35 45 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.) Rate of return % b. What will be the divisor for the price-weighted index in year 2? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Divisor c. Calculate the rate of return of the price-weighted index for the second period (t = 1 to t=2). Rate of return %
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