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	97	100	102	100	102	100
B	57	200	52	200	52	200
C	114	200	124	200	62	400

a. Calculate the rate of return on a price-weighted index of the three stocks for the first period (t = 0 to t = 1)

b. What will be 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).