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

	P0	Q0	P1	Q1	P2	Q2
A	80	275	85	275	85	275
B	85	650	80	650	80	650
C	35	950	50	950	25	1,900

a. Calculate the rate of return on a price-weighted index of the three stocks for the first period (t = 0 to t = 1). (Do not round intermediate calculations. Round your answer to 2 decimal places.)

b. Calculate the new divisor for the price-weighted index in year 2. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

c. Calculate the rate of return for the second period (t = 1 to t = 2).