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Use the chart below to answer the following questions. T = 0 T = 1 T = 2 Stock Price Quantity Price Quantity Price Quantity

Use the chart below to answer the following questions. T = 0 T = 1 T = 2 Stock Price Quantity Price Quantity Price Quantity A 90 100 95 100 98 100 B 45 200 50 200 50 200 C. 30 200 30 200 10 400 a. Create a value (VW) and price weighted index (PW) using the three stocks. Assume each stock will be in the index and calculate the return of each from t = 1 to t = 2. (There should be 2 answers here. b. What would be the new divisor for the price weighted index at time period 0 if stock C had a 2 for 1 stock split c. What is the holding period return for each stock from time 0 to time 2. Assume Stock B has a $5 dividend and the other stocks do not. (Ignore the number of shares for this question only)

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