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. ABU C Po 98 Divisor 58 116 Rate of return lo 100 200 200 P1 103 53 126 Q1 100 200 200 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.) % P2 103 53 63 e2 100 200 400 b. What will be the divisor for the price-weighted index in year 2? (Do not round intermediate calculations. Round your answ to 2 decimal places.) H

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 ( t=0 to t=1). (Do not round intermediate caiculations. 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 intermediate calculations. Round your answ to 2 decimal places.) Divisor