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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

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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 in the last period. P2 93 20 100 200 200 B 93 Po 88 48 96 01 100 200 200 02 100 200 400 106 53 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 4.31% 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 tot -2). Rate of return %

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