Problem 2-19 (Algo) Consider the three stocks in the following table. P represents price at time t, and represents shares outstanding at time t. Stock C splits two-for-one in the last period. ABU Po 86 46 92 Rate of return Divisor 20 100 200 200 P 91 41 102 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 return % 9 100 200 200 P2 91 41 51 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.) 22 100 200 400 % c. Calculate the rate of return of the price-weighted index for the second period (t=1 to t= 2).

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 Required: o. 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 colculations. Round your answer to 2 decimol places.) b. What will be the divisor for the price-weighted index in year 2? 100 not round intermediote colculotions. Round your answer to 2 decimal places.) c. Caiculate the rate of return of the price-weighted index for the second period (t1 to t=2)