12. Consider the three stocks in Table (6.7.2). P_ represents price at time t, and Qt represents shares out- standing at time t in millions. Stock A splits 2 for 1 at time 1. (A) Calculate the rate of return on an equally-weighted portfolio of the three stocks from time t = 0 to t=1. Table 6.7.2 Po Qo P Q1 A 10 500MM 4 1000MM B 50 600MM 54 600MM C 70 700MM 73 700MM (B) If the level of an equally-weighted index of the three stocks is 155.2 at time zero, what is the level at time 1? (C) Calculate the rate of return on a value-weighted portfolio of the three stocks from time t = 0 to t = 1. (D) If the level of a value-weighted index of the three stocks at time zero is 155.2, what is the level at time 1? (E) Calculate the rate of return on a price-weighted portfolio of the three stocks from time t = 0 to t = 1. (F) If the level of a price-weighted index of the three stocks at time zero is 120.3, what is the level at time 1? (G) If the level of a price-weighted index of the three stocks at time zero is 120.3, what is the value of the divisor, d, at time t= 0? (H) What must d change to at time t+1 to keep the index price-weighted? (I) Suppose you own 1000 shares each of stocks A, B, and C at time t = 0. How many shares of each stock will you hold at time t+1 after rebalancing to keep the portfolio price-weighted? 12. Consider the three stocks in Table (6.7.2). P_ represents price at time t, and Qt represents shares out- standing at time t in millions. Stock A splits 2 for 1 at time 1. (A) Calculate the rate of return on an equally-weighted portfolio of the three stocks from time t = 0 to t=1. Table 6.7.2 Po Qo P Q1 A 10 500MM 4 1000MM B 50 600MM 54 600MM C 70 700MM 73 700MM (B) If the level of an equally-weighted index of the three stocks is 155.2 at time zero, what is the level at time 1? (C) Calculate the rate of return on a value-weighted portfolio of the three stocks from time t = 0 to t = 1. (D) If the level of a value-weighted index of the three stocks at time zero is 155.2, what is the level at time 1? (E) Calculate the rate of return on a price-weighted portfolio of the three stocks from time t = 0 to t = 1. (F) If the level of a price-weighted index of the three stocks at time zero is 120.3, what is the level at time 1? (G) If the level of a price-weighted index of the three stocks at time zero is 120.3, what is the value of the divisor, d, at time t= 0? (H) What must d change to at time t+1 to keep the index price-weighted? (I) Suppose you own 1000 shares each of stocks A, B, and C at time t = 0. How many shares of each stock will you hold at time t+1 after rebalancing to keep the portfolio price-weighted