You need the following information to answer the following FOUR questions. Assume that there are two stocks in the world (STOCK A and STOCK B) as presented below: STOCK A B PO 35 30 QO 200 100 P1 29.75 27 Q1 200 100 PO represents the price per share at time period 0 (today). QO represents the number of shares outstanding at time period 0 (today). P1 represents the price per share at time period 1 (one year from today). Q1 represents the number of shares outstanding at time period 1 (one year from today). Assume that you have a total of $65 to invest on PO. PO represents the price per share at time period 0 (today). QO represents the number of shares outstanding at time period 0 (today). P1 represents the price per share at time period 1 (one year from today). Q1 represents the number of shares outstanding at time period 1 (one year from today). Assume that you have a total of $65 to invest on PO. 4) If your portfolio is a PRICE-WEIGHTED AVERAGE (A PRICE-WEIGHTED INDEX) of the two stocks, what is your rate of return over the period (from PO to P1)? 5) If your portfolio is a PRICE-WEIGHTED AVERAGE ( PRICE-WEIGHTED INDEX) of the two stocks, how many shares of STOCK A do you buy? (YOU CAN BUY A FRACTION OF A SHARE) 1 6) If your portfolio is an EQUALLY-WEIGHTED INDEX of the two stocks, how many shares of STOCK B do you buy? (YOU CAN BUY A FRACTION OF A SHARE) 7) Which stock, if any, carries more weight when calculating the rate of return using the PRICE-WEIGHTED AVERAGE method? A. STOCK A B. STOCKB C. THEY CARRY THE SAME WEIGHT