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Problem 2-19 (Algo) Consider the three stocks in the following table. P, represents price at time t, and represents shares outstanding at time Stock C

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Problem 2-19 (Algo) Consider the three stocks in the following table. P, represents price at time t, and represents shares outstanding at time Stock C splits two-for-one in the last period. A B PO 96 56 112 00 100 200 200 PL - 101 51 122 Di 100 200 P2 101 51 61 02 100 200 400 200 Required: a. Calculate the rate of return on a price weighted index of the three stocks for the first period ( 0 tot 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 27 (Do not round intermediate calculations. Round your answer to 2 decimal places.) Divor c. Calculate the rate of return of the price-weighted index for the second period (t=1 to't=2). Rate of return. %

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