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(20 pts, 4 pts each)(Q7-Q11) Consider the three stocks in the following table. Pt represents price at time t, and Qt represents shares outstanding at

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(20 pts, 4 pts each)(Q7-Q11) Consider the three stocks in the following table. Pt represents price at time t, and Qt represents shares outstanding at time t. Stock C splits two-for-one in the last period. lo $90 Pi $95 Qi 100 P2 $95 Q2 100 STOCK A 100 STOCKB $50 200 $45 200 $45 200 STOCK C $100 200 $110 200 $55 400 a) (Q7) Calculate the rate of return on a price-weighted index of the three stocks for the first period (from t=0 to t= 1). b) (Q8) What must happen to the divisor for the price-weighted index in year 2? c) (Q9) Calculate the rate of return of the price-weighted index for the second period (from t= 1 to t=2)

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