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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. A B PO 94 54 108 20 100 200 P1 99 49 118 100 200 200 P2 99 49 59 Q2 100 200 400 200 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 and put it in the following format XX.XX. Do NOT record starting O's.) 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 and put it in the following format XX.XX. Do NOT record starting O's.) Divisor

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