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Consider the three stocks in the following table. Pe represents price at time t, and Qt represents shares outstanding at time t Stock C splits

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Consider the three stocks in the following table. Pe represents price at time t, and Qt represents shares outstanding at time t Stock C splits two for one in the last period A B C 20 95 60 95 20 200 200 300 PL 100 55 110 21 200 200 300 P2 100 55 55 02 200 200 600 o. Calculate the rate of return on a pnce-weighted index of the three stocks for the first penod (r=0 tot 1). Do not round Intermediate calculations. Round your answer to 2 decimal places.) Rate of return 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.) New divisor 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.) New divisor C. Calculate the rate of return for the second period (t=1 to 2 (Round your answer to 2 decimal places.) Rate of return %

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