QUESTION 5

1. Consider the three stock in the following table. P_t represents price at time t, and Q_t represents shares outstanding at time t. Stock C splits two for one in the last period.

   	P0	Q0	P1	Q1	P2	Q2
   A	90	100	95	100	95	100
   B	50	200	45	200	45	200
   C	100	200	110	200	55	400

   Calculate the rate of return for the second period (t=1 to t=2) on a market-value-weighted index. (Round your answer to the fourth decimal, i.e. 0.0000)