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19. Consider the three stocks in the following table. Prepresents price at time t, and Q represents shares outstanding at time t. Stock C splits
19. Consider the three stocks in the following table. Prepresents price at time t, and Q represents shares outstanding at time t. Stock C splits two-for-one in the last period. Po Qo P Q P Q A 90 100 95 100 95 100 B 50 200 45 200 45 200 100 200 110 200 55 400 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
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