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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. A 02 Po 98 58 116 00 100 200 200 Pi 01 103 100 53 200 126 200 P2 103 53 63 100 200 400 a. Calculate the rate of return on a price-weighted index of the three stocks for the first period (t=0 to 1-1). (Do not round intermediate calculations. Round your answer to 2 decimal places.) Rate of return % 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 ( 8 014742 b. What will be the divisor for the price weighted index in year 27 (Do not round intermediate calculations. Round your answer to 2 decimal places.) Divisor c. Calculate the rate of return of the price weighted index for the second period (t = 100-2) Rate of return %

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