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

Stock A B C

Price Quantity Price 90 100 95 45 200 50 30 200 30

Quantity Price Quantity 100 98 100 200 50 200 200 10 400

1. 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.

2. 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

3. 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)