4. (15 pts) 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. Qo P, Po $90 P, $95 Q, 100 Q2 100 STOCK A 100 $95 STOCK B $50 200 $45 200 $45 200 STOCK C $100 200 $110 200 $55 400 a) 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) What must happen to the divisor for the price-weighted index in year 2? c) Calculate the rate of return of the price-weighted index for the second period (from t = 1 to t=2). 5. (10 pts) Using the data in the previous problem, calculate the first-period rates of return (from t= 0 to t = 1) on the following indexes of the three stocks: a) A market value-weighted index b) An equally-weighted index