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Consider the three stocks in the following table. Pt represents price at time t, and ot 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 ot represents shares outstanding at time t. Stock C splits two-for-one in the last period. A B 100 60 120 Do 100 200 200 P1 105 55 130 01 100 200 200 P2 105 55 65 02 100 200 400 Required: a. Calculate the rate of return on a price-weighted index of the three stocks for the first period (t =0 to = 1). (Do not round intermediate calculations. Round your answer to 2 decimal places.) Rate of return pleuropa per 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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