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

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Finance

Consider the three stocks in the following table.P_t represents price at time t, andQ_t represents shares outstanding at timet. Stock C splits two-for-one in the last period.
P₀ Q₀ P₁ Q₁ P₂ Q₂
  A 83       100       88       100       88       100
  B 43       200       38       200       38       200
  C 86       200       96       200       48       400
a.
Calculate the rate of return on a price-weighted index of thethree stocks for the first period (t = 0 to t =1). (Do not round intermediate calculations. Round youranswer 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 answerto 2 decimal places.)
  Divisor

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Consider the three stocks in the following table.Pt represents price at time t, andQt represents shares outstanding at timet. Stock C splits two-for-one in the last period.P0Q0P1Q1P2Q2 A83 100 88 100 88 100 B43 200 38 200 38 200 C86 200 96 200 48 400 a.Calculate the rate of return on a price-weighted index of thethree stocks for the first period (t = 0 to t =1). (Do not round intermediate calculations. Round youranswer 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 answerto 2 decimal places.) Divisor

	P₀	Q₀	P₁	Q₁	P₂	Q₂
A	83	100	88	100	88	100
B	43	200	38	200	38	200
C	86	200	96	200	48	400