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. ABU C Po 90 50 100 Rate of return 90 100 200 200 Divisor P1 95 45 110 91 100 200 200 Required: a. Calculate the rate of return on a price-weighted index of the three stocks for the first period (t = 0 to t= 1). (Do not round intermediate calculations. Round your answer to 2 decimal places.) % P2 95 45 55 92 100 200 400 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.)

Consider the three stocks in the following table. Pt represents price at time t,andQt fepresents shares outstanding at time t Stock C-splits two-for-one in the last period. Required: a. Calculate the rate of return on a price-weighted index of the three stocks for the first period ( t=0 to t=1). (Do not round intermediate calculations. Round your answer to 2 decimal places.) What will be the divisor for the price-weighted index in year 2? (Do not round intermediate calculations. Round your inswer to 2 decimal places.)