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.

a. Calculate the rate of return on a price-weighted index of the three stocks for the first period (from t = 0 to t = 1)

b. What must happen to the divisor for the price-weighted index in year 2? And calculate the rate of return of the price weighted index of the second period (from t = 1 to t = 2)

c. Calculate the first-period rates of return on a market value-weighted index of the three stocks.

d. Calculate the first-period rates of return on an equally weighted index of the three stocks.