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4 Problem 2-19 (Algo) 20 points Consider the three stocks in the following table. Pt represents price at time t, and Qt represents shares outstanding

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4 Problem 2-19 (Algo) 20 points 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. eBook A B B PO 80 40 80 20 100 200 200 P1 85 35 90 Q1 100 200 200 P2 85 35 45 Q2 100 200 400 References Required: a. Calculate the rate of return on a price-weighted index of the three stocks for the first period (t = 0 to t= 1). (Do not round intermediate calculations. Round your answer to 2 decimal places.) Rate of return 5.01% Mc Graw Hill b. What will be the divisor for the price-weighted index in year 2? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Divisor

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