Problem 2 (15 pts) We want to form an index using the five stocks presented in the below table: Shares Outstanding (Q0) Initial Price (P0) Price at the end of Period 1 (P1) Price at the end of Period 2 (P2) Price at the end of Period 3 (P3) Stock-A 50 Millions $110 $130 $115 $125 Stock-B 40 Millions $120 $120 $125 $145 Stock-C 30 Millions $130 $110 $105 $120 Stock-D 20 Millions $140 $100 $135 $115 Stock-E 10 Millions $150 $90 $155 $165 Assume each stock preserves the same number of outstanding shares during the three periods. Q3 = Q2 = Q1 = Q0 A. Calculate the rate of return on a value-weighted (market-capitalization weighted) index for first period (from t = 0 to t = 1)? (4.5 pts) B. Calculate the rate of return on an equally weighted index for the second period (from t = 1 to t = 2)? (4.5 pts) C. Calculate the rate of return on a price-weighted index for the third period (from t = 2 to t = 3)? (4.5 pts) D. If now (at t = 0), you invest $10,000 in an index fund that is tracking the performance of the value- weighted index formed from the above five stocks, how much money will you have after one period (at t = 1)? (1.5 pts)