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. $($LO $2-2)$

a$.$ Calculate the rate of return on a price$-$weighted index of the three stocks for the first period 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 period $(t=1$ to $t=2).$

End$-$of$-$Chapter Problems $23$ in Chapter $2($Pasted as follows$)$

A T$-$bill with face value $$10,000$ and $87$ days to maturity is selling at a bank discount ask yield of $3\mathrm{.}4\%.$

a$.$ What is the price of the bill?

b$.$ What is its bond equivalent yield?