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Consider the three stocks in the following table. Pt represents price at time t, and ot represents shares outstanding at time t. Stock C splits

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Consider the three stocks in the following table. Pt represents price at time t, and ot represents shares outstanding at time t. Stock C splits two-for-one in the last period. Po 20 P1 21 P2 22 A 95 100 100 100 100 100 B 55 200 50 200 50 200 110 200 120 200 60 400 Required: 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-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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