. You want to create a price-weighted index consisting of the following three stocks. At t 0, you arbitrarily set the initial value of the index at 100 Stock A Stock B Stock C August (t-0) Share Price $40 S50 S100 September (t1) Share Price $44 S54 S110 (a) Given a (hypothetically) same percentage change in price e.g., 1%-which stock will have the greatest impact on the value of index? Why? Explain in words (3 marks) (b) Define a divisor 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 t- 0? (3 marks) (e) Compute the price-weighted index value at t-1. What is the monthly percentage return on the index from t 0 to (3 mar (d) Now consider a 2-for-1 stock split for stock C in September, t1. 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? (4 marks)