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. A B C Po 98 58 116 Rate of return Divisor 00 100 200 200 P1 103 53 126 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.) Rate of return % 91 100 200 200 P2 103 53 63 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.) 92 100 200 400 % c. Calculate the rate of return of the price-weighted index for the second period (t=1 to t= 2).

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. 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 iniermediate calculations. Round your answer to 2 decimal places.) 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.) c. Calculate the rate of return of the price-weighted index for the second period (t=1 to t=2 )