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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

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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. 55 B Pe 50 185 85 Og 325 250 550 100 Q1 325 250 550 P2 55 189 45 02 325 250 1,100 90 a. Calculate the rate of return on a price weighted index of the three stocks for the first period (r=0 to 1 = 1). (Do not round intermediate calculations. Round your answer to 2 decimal places.) ces Rate of return 96 b. Calculate the new divisor for the price-weighted index in year 2. (Do not round intermediate calculations, Round your answer to 2 decimal places.) New divisor

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