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

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Consider the three stocks in the following table. Pe represents price at time t, and represents shares outstanding at time Stock C splits two-for-one in the last period, PO 00 0 P2 02 91 100 96 200 46 102 200 56 400 51 100 200 96 46 100 200 200 112 a. Calculate the rate of return on a price-weighted index of the three stocks for the first period (t = 0 tot 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 27 (Do not round intermediate calculations. Round your answer to 2 decimal places.) Divisor

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