I have the following question which I want to know the answer in detail:

2. [No Excel] There are two stocks, A and B, with the following information: Stock A Stock B Price (PAD) Share Outstanding Price (Pat) Share Outstanding 1=0 60 750 40 1000 1= 1 80 750 60 1000 (a) Suppose the initial divisor is 1, construct a price-weighted index using the two stocks. What are the index level lo, and I, at time 0 and 1, respectively, and the return from t=0 to t=1? (b) When there was a 2-for-1 stock split for stock A at 1=1, what is D,? Does the index level change? (c) If you have $200, how would you construct a portfolio that mimics the price-weighted index? What is the return of your investment? (no split) (d) Suppose that In = 100, construct a value-weighted index using the two stocks and compute its return (no split)