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5 Consider the three stocks in the following table. Pe represents price at time and represents shares outstanding at time Stock splits two-for-one in the

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5 Consider the three stocks in the following table. Pe represents price at time and represents shares outstanding at time Stock splits two-for-one in the last period Pe 86 46 Qe 100 200 200 Pi 91 41 102 22 100 200 200 P2 91 41 51 22 100 200 400 14951 a. Calculate the rote of return on a price-weighted index of the three stocks for the first period (r= 0 to + 1). (Do not round Intermediate calculations. Round your answer to 2 decimal places.) Rate of retum b. What will be the divisor for the price-welghted index in year 2? (Do nor round intermediate calculations. Round your answer to 2 decimal places.) Divisor

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