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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

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.
P0 Q0 P1 Q1 P2 Q2
A 801008510085100
B 402003520035200
C 802009020045400
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.)
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.)

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