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Consider the three stocks in the following table. P , represents price at time t , and e , represents shares outstanding at time t

Consider the three stocks in the following table. P, represents price at time t, and e, represents shares outstanding at time t. Stock C splits two-for-one in the last period. (LO 2-2)a. Calculate the rate of return on a price-weighted index of the three stocks for the firstperiod (t=0 to t =1).b. What must happen to the divisor for the price-weighted index in year 2?c. Calculate the rate of return of the price-weighted index for the second periodt=1tot=2.

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