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  3. b 2. consider the three stocks in the following ta

B 2. Consider the three stocks in the following table. Pt represents price at time...

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Finance

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B 2. 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. PO Q. P Q: P2 Q2 A 90 425 95 425 95 425 45 450 40 450 40 450 80 650 90 650 45 1,300 A. Calculate the rate of retum on a price-weighted index of the three stocks for the first period (t = 0 tot - 1). B, Calculate the new divisor for the price-weighted index in year 2. C. Calculate the rate of return for the second period (t = 1 tot=2)

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