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  3. 3. consider the three stocks in the following tabl

3. Consider the three stocks in the following table. Pt represents price at time t,...

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3. Consider the three stocks in the following table. Pt represents price at time t, and Qt represents shares outstanding at time t. Stock C splits two-for-one in the last period 90 50 100 200110 200 55 100 200 400 100 95 100 95 200 45 200 45 1) Calculate the rate of return on a price-weighted index of the three stocks for the first period (fromt-0 to t-1, assuming the original divisor is 3) 2) What is the value of the divisor for the price-weighted index at t= 2? 3) Calculate the rate of return of the price-weighted index for the second period 4) Calculate the first period rate of return on a market value-weighted index 5) Calculate the first period rate of return on an equal-weighted index (from t (from t to t 2) (from t 0 to t= i, assuming the index value at t = 0 is 100) 0 to t = 1, assuming the index value at t = 0 is 100)

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