19) Consider the three stocks in the following table. Pt represents the price at time t, and Q represents shares outstanding at time t. Stock C splits two-for-one in the last period. (LO 2-2) Calculate the rate of return on a price-weighted index of the three stocks for the first period (1 = 0 to t= 1). What must happen to the divisor for the price-weighted index in year 2? Calculate the rate of return of the price-weighted index for the second period (n=1 to 1=2). 15. De Trader opens a brokerage account and purchases 300 shares of Internet Dreams at $40 per share. She borrows $4,000 from her broker to help pay for the purchase. The interest rate on the loan is 8%. 19) Consider the three stocks in the following table. Pt represents the price at time t, and Q represents shares outstanding at time t. Stock C splits two-for-one in the last period. (LO 2-2) Calculate the rate of return on a price-weighted index of the three stocks for the first period (1 = 0 to t= 1). What must happen to the divisor for the price-weighted index in year 2? Calculate the rate of return of the price-weighted index for the second period (n=1 to 1=2). 15. De Trader opens a brokerage account and purchases 300 shares of Internet Dreams at $40 per share. She borrows $4,000 from her broker to help pay for the purchase. The interest rate on the loan is 8%