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.

P0 Q0 P1 Q1 P2 Q2

A 95 200 100 200 100 200

B 60 200 55 200 55 200

C 95 300 110 300 55 600

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 answers to 2 decimal places.)

b. Calculate the new divisor for the price-weighted index in year 2

c. Calculate the rate of return for the second period (t= 1 to t= 2)