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Consider the three stocks in the following table. > represents price at time t, and represents shares outstanding at time t Stock C splits

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Consider the three stocks in the following table. > represents price at time t, and represents shares outstanding at time t Stock C splits two-for-one in the last period. PO Op 99 100 104 C 59 110 200 200 54 120 100 200 104 100 54 200 200 64 400 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 retim 3.32 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 c. Calculate the rate of return of the price-weighted index for the second period (t-1 to -2). Rate of return 2 %

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