a) What is the divisor for the price-weighted index in year 2?

b) Calculate the rate of return on a price-weighted index of the three stocks for the second period (t=1 to t=2).

c) Calculate the rate of return on an equally-weighted index of the three stocks for the second period

Consider the three stocks in the following table. Pt represents price at time t, and Qt represents shares outstanding at time t. PO Qo P1 Q1 P2 A 85 200 95 200 100 200 B 42 500 50 500 25 1,000 77 300 82 300 90 300