Consider the three stocks in the following table. Pt represents price at time t, and...
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Consider the three stocks in the following table. Pt represents price at time t, and 0 + represents shares outstanding at time t Stock C splits two-for-one in the last period. Po 96 8 C 00 100 200 200 Pi 101 51 122 01 100 200 56 P2 101 51 61 02 100 200 112 200 400 Required: a. Calculate the rate of return on a price-weighted index of the three stocks for the first period (r=0 tot 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=1to t=2). Rate of return
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