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Consider the three stocks in the following table. Pt represents price at time t and Q; 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 Q; represents shares outstanding at time t. Stock C splits two-for-one in the last period. Po A 95 B 55 C 110 QO 100 200 200 P1 100 50 120 Q1 100 200 200 P2 100 50 60 100 200 400 a. Calculate the rate of return on a price weighted index of the three stocks for the first period (1 = 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 intermediate calculations. Round your answer to 2 decimal places.) Divisor

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