(Solved): Consider the three stock in the following table. Pt represents price at time t, and Qt repres ...

Consider the three stock in the following table. $P_t$ represents price at time $t$, and $Q_t$ represents share s outstanding at time $t$. Stock $C$ splits two-for-one in the last period. a) Calculate the rate of return on a price-weighted index of the three stocks for the first period, from $t=0$ to $t=1$. b) What must happen to the divisor for the price-weighted index in year 2? c) Calculate the rate of return of the price-weighted index for the second period $t=1$ to $t=$ 2). d) Calculate the first-period rates of return on a market-value-weighted index. e) Calculate the first-period rates of return on an equally weighted index.