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Consider the three stocks in the following table. Pe represents price at time t, and 0t represents shares outstanding at time to Stock splits two-for-one

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Consider the three stocks in the following table. Pe represents price at time t, and 0t represents shares outstanding at time to Stock splits two-for-one in the last period. Pe 81 41 82 Qa 100 200 200 Pi 86 36 92 01 1ea 200 2ee P2 86 36 46 B 02 100 2e0 400 a. Calculate the rate of return on a price-weighted index of the three stocks for the first period (t = Oto - 1). (Do not round intermediate calculations, Round your answer to 2 decimal places.) Rate of retum b. What will be the divisor for the price-weighted index in year 2? (Do not round Intermediate calculations. Round your answer to 2 decimal places.) Divisor c. Calculate the rate of return of the price-weighted index for the second period (t=1 to t=2). Rate of return

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