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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

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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. P1 01 87 100 92 100 47 200 42 200 94 200 104 200 5272 P2 Q2 92 100 42 200 52 400 a. Calculate the rate of return on a price-weighted index of the three stocks for the first period (t=0 tot 1). (Do not round intermediate calculations. Round your answer to 2 decimal places.) Rate of return Answer is complete and correct. 4.39 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.) 0 Answer is complete but not entirely correct.

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