Consider the three stocks in the following table. Pt represents price at time t, and...
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Accounting
Consider the three stocks in the following table. Pt represents price at time t, and ot represents shares outstanding at time t. Stock C splits two-for-one in the last period. A B c Po 98 58 116 Q0 100 200 200 Pi 103 53 126 01 100 200 200 P2 103 53 63 02 100 200 400 a. Calculate the rate of return on a price-weighted index of the three stocks for the first period (t=0 to t= 1). (Do not round intermediate calculations. Round your answer to 2 decimal places.) Rate of return % b. What will be the divisor for the price-weighted index in year 2? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Divisor c. Calculate the rate of return of the price-weighted index for the second period (t=1 to t= 2). Rate of return %
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