Consider the three stocks in the following table. $P_t$ represents price at time

$t,$ and $Q_t$ represents shares outstanding at time $t.$

Note that Stock B had a $2-$for$-1$ split after the market closed on $t=1.P_1=$

$$60$ was stock B$\text{'}$s price before the split. As a result of the stock split, price

fell to $$30$ and shares outstanding increased from $500$ to $1000.$

First, calculate the rate of return on a market value$-$weighted index

$($MVWI$)$ of the three stocks for the first period $(t=0$ to $t=1).$

Second, calculate the price$-$weighted index $($PWI$)$ of the three stocks

for $t=0,t=1,$ and $t=2.$

Round your answer to the nearest integer.

The rate of return on the MVWI is $27\%.$ The PWI is $75$ in $t=0,82$ in $t=1,$ and $88$ in

$t=2.$

The rate of return on the MVWI is $28\%.$ The PWI is $65$ in $t=0,80{\displaystyle \underset{\phantom{}}{\overset{\phantom{}}{}}}=1,$ and $73$ in

$t=2.$

The rate of return on the MVWI is $27\%.$ The PWI is $65$ in $t=0,75$ in $t=1,$ and $92$ in

$t=2.$

The rate of return on the MVWI is $28\%.$ The PWI is $65$ in $t=0,80$ in $t=1,$ and $86$ in

$t=2.$