Consider the three stocks in the following table. Pt represents the price at time t, and Qt represents the shares outstanding at time t

P0 Q0 P1 Q1 P2 Q2

A 90 100 95 100 95 100

B 50 200 45 200 45 200

C 100 200 110 200 110 200

a-) Calculate the divisor for the price-weighted index if stock C splits 2:1 at t=1

a-) What will be the divisor from periods t = 3 onwards if no splits are expected?

b-) Calculate the first-period rate of return (from t = 0 to t = 1) on a Market value-weighted index

c-) Calculate the first-period rate of return (from t = 0 to t = 1) on an Equally value-weighted index