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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

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.
Stock P0 Q0 P1 Q1 P2 Q2
A 100625105625105625
B 656506065060650
C 701509015045300
Required:
Calculate the rate of return on a price-weighted index of the three stocks for the first period (t =0 to t =1).
Note: Do not round intermediate calculations. Round your answer to 2 decimal places.
Calculate the new divisor for the price-weighted index in year 2.
Note: Do not round intermediate calculations. Round your answer to 2 decimal places.
Calculate the rate of return for the second period (t =1 to t =2).
Note: Round your answer to 2 decimal places.

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