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Problem 2-19 (Algo) Consider the three stocks in the following table. Pt represents price at time t, and Qt represents shares outstanding at time t.
Problem 2-19 (Algo) 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. A B Pe 91 51 102 00 100 200 200 P1 96 46 112 01 100 200 200 P2 96 46 56 02 100 200 400 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 return 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
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