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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 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 Qt represents shares outstanding at time Stock C Splits two-for-one in the last period, Pe 86 46 92 Qe 180 2ee 200 Pi 91 41 01 100 2ee 200 P2 91 41 51 22 lee 200 480 202 a. Calculate the rate of return on a price-weighted index of the three stocks for the first period (r=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 intermediage calculations. Round your answer to 2 decimal places.) Divisor

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