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Consider the three stocks in the following table. Pt represents price at time t, and Qt represents shares outstanding at time t. Stock C splits
Consider the three stocks in the following table. Pt represents price at time t, and Qt represents shares outstanding at time t. Stock C splits two for one in the last period. (Leave no cells blank - be certain to enter "O" wherever required.) B Po 50 105 85 20 325 250 550 P1 55 100 90 Q1 325 250 550 P2 55 100 45 Q2 325 250 1,100 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. 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 price-weighted index for the second period (t = 1 to t= 2). Rate of return %
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