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Consider the three stocks in the following table. Pe represents price at time t, and represents shares outstanding at time t. Stock C splits two-for-one
Consider the three stocks in the following table. Pe represents price at time t, and represents shares outstanding at time t. Stock C splits two-for-one in the last period. De P1 01 P2 02 83 88 A B 100 2e8 43 86 38 96 1ee 2ee 2ee 88 38 48 1ee 2ee 4ee a. Calculate the rate of return on a price-weighted index of the three stocks for the first period (t=0 to t= 1). (Do not round intermediate calculations. Round your answer to 2 decimal places.) Rate of return % b. What will be the divisor for the price-welghted Index In year 22 (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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