a. The ABC Index is a price weighted stock index based on the 3 largest food processing firms. The data of the index is given in the following table: Q 200 B Po 180 100 200 P: 190 90 220 Qi 200 400 400 P2 190 90 110 400 200 400 800 400 i. Perepresents price at time t, and Q, represents shares outstanding at timet. Calculate the rate of return on the ABC Index of the three stocks for the first period (t = 0 tot = 1) Show all your calculations. 4 marks ii. Stock splits two-for-one in the last period (t = 2). What must happen to the divisor for the price-weighted index in the last period? Show all your calculations 4 marks b. Using the data contained in the table of part (a), calculate the first-period rates of return (t = 0 tot = 1) if the ABC index is a market value-weighted index. Show all your calculations. 4 marks On January 1, you sold short 100 shares of Baker's stock at $42 per share. On April 1, a dividend of $6 per share was paid. On May 1, you covered the short sale by buying the stock at a price of $30 per share. What is the value of your account on May 1? Show all your calculations. 5 marks