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

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Consider the three stocks in the following table. Pt represents price at time t, and Ot represents shares outstanding at timet Stock C splits two-for-one in the last period. 01 Pe 96 56 B 00 100 200 200 P1 101 51 122 100 P2 101 51 61 02 100 200 400 200 200 112 a. Calculate the rate of return on a price-weighted index of the three stocks for the first period (20 to = 1). (Do not round intermediate calculations. Round your answer to 2 decimal places.) Rate of retum 3.78% 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 2.34 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 2.34 c. Calculate the rate of retum of the price-weighted index for the second period (t=1 to 1-2) Rate of return

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