b. Calculate the rate of return on price-weighted index of the three stocks for the period t=0 to t= 1

c. What would happen to the divisor for the price-weighted index during the last period?

11. ABC Index includes the following three stocks shown in the table below, where Pt and Qt represents stock's price and shares outstanding at time t respectively. Stock "B" splits 3 for 1 in the last period. Calculate the rate of return on market value-weighted index of the three stocks for the period t=0 to t= 1. * PO QO P1 P2 Q2 Q1 200 . 200 200 250 260 200 B 80 300 90 300 30 900 140 200 180 200 190 200