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  1. business
  2. finance
  3. consider the three stocks in the following table.

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

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Finance

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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. 100 60 120 29 100 200 200 Pa 105 55 130 B Q1 100 200 200 P2 105 55 65 Q2 100 200 400 Required: 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 1 = 2). Rate of return %

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