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2. Use the chart below to answer the following questions. Stock A B T=0 Price Quantity 90 100 45 200 30 200 T=1 Price Quantity

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2. Use the chart below to answer the following questions. Stock A B T=0 Price Quantity 90 100 45 200 30 200 T=1 Price Quantity 95 100 50 200 30 200 T = 2 Price Quantity 98 100 SO 200 10 400 a. Create a value (VW) and price weighted index (PW) using the three stocks. Assume each stock will be in the index and calculate the return of each from t I tot -2.(There should be 2 answers here. b. What would be the new divisor for the price weighted index at time period O if stock C had a 2 for 1 stock split c. What is the holding period return for each stock from time 0 to time 2. Assume Stock B has a S5 dividend and the other stocks do not. (Ignore the number of shares for this question only)

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