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3. Consider the three stocks in the following table. Pt represents price at time t, and Qt represents shares outstanding at time t. Stock C
3. 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. Po Q1 P2 A 70 50 90 Qo 100 200 200 P1 90 40 100 200 200 95 45 70 Q2 100 200 400 110 b. What must happen to the divisor for the price-weighted index in year 2? C. Calculate the rate of return for the second period (t = 1 to t = 2). d. Using the data in the previous problem, calculate the first-period rates of return on the following indexes of the three stocks: 1) A market value-weighted index. 2) An equally weighted index. Please explain in DETAIL. (Handwritten if possible) Especially PART B. Add any formulas or notes that might be useful. Please DONT USE OTHER PEOPLES ANSWER'S ON HERE AS THEY'RE WRONG. Answer in DETAIL AND ALL THE QUESITIONS. OTHERWISE ABSTAIN FROM ANSWERING
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