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

$t=2.$