2. (Review: value-weighted index, replacement) Consider the four stocks in the following table. P. represents closing price on day t, and Q. represents the total shares outstanding at the market close of day t. Stock 170 60 170 60 60 25 80 100 62 29 85 105 64 27 83 103 170 60 64 50 50 50 (a) At the end of day 0, the initial value of the value-weighted (VW) index containing stocks A, B, and C is 2,000. What is the index value at the end of day 1? (8 decimal places for the divisor (b) Calculate the rate of return on the value-weighted index of the three stocks for day 1 (c) At the end of day 1, company C is removed from the index, but company D is added to the index. What is the new value of the divisor after the replacement (8 decimal places)? (d) Calculate the index level (the index now contains stocks A, B, and D) at the end of day 2