Question 1 (5 marks) You would like to create a price-weighted index consisting of the following three stocks. At the beginning in August (t=0), you arbitrarily set the initial value of the index at 100. August (t=0) Share Price September (t=1) Share Price Stock A $40 $44 Stock B $60 $54 Stock C $100 $110 a. Define a divisor for the index index as a constant that divides the sum of the three prices (price of A+ price of B + price of C) to reach the index value. What is the value of the divisor at the beginning in August (t = 0)? (1 mark) b. Compute the price-weighted index value in September (t = 1). (2 marks) c. Now consider a 2-for-1 stock split for stock C right after observing the September share price. That is, each old share of stock C becomes 2 new shares while the price per share is halved from $110 to $55. What is the new value of the divisor? (2 marks)