Consider the three stocks in the following table. P_t represents the price at time t, and Q_t represents shares outstanding at time t. Stock C splits 2 for 1 in the last period.

Stock	Price (P0)	Share outstanding (Q0)	Price (P1)	Share outstanding (Q1)
A	$95	100	$100	100
B	$45	200	$40	200
C	$110	200	$120	200

1. Calculate the rate of return on a price-weighted index of the three stocks for the first period (t = 0 to t = 1). (4points)
2. Calculate the rate of return on a market-weighted index of the three stocks for the first period (t = 0 to t = 1). (4 points)
3. What must happen to the divisor for the price-weighted index to account for the stock split? (4 points)