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Consider the five stocks in the following table. Pt represents price at time t,and Qt represents shares outstanding at time t. Stock C splits 3

Consider the five stocks in the following table. Pt represents price at time t,and Qt represents shares outstanding at time t. Stock C splits 3 for 1in year 2018 and Stock D splits 2 for 1 in year 2019.

Stocks P2017 Q2017 P2018 Q2018 P2019 Q2019
A 170 100 175 100 172 100
B 95 200 98 200 97 200
C 180 200 57 600 60 600
D 100 200 110 200 53 400

a.What is the new divisor for the price weighted index in year 2018?

b.Calculate the rate of return on a price-weighted index of the four stocks form year 2017 to 2018?

c.What is the new divisor for the price weighted index in year 2019?

d.Calculate the rate of return on a price-weighted index of the four stocks form year 2018 to 2019?

e.Calculate the rates of return on a market value-weighted index of the four stocks form year 2017 to 2018?

f.Calculate the rates of return on an equally weighted index the four stocks form year 2018 to 2019?

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