A price-weighted index contains three stocks: A, B and C The initial divisor is given by 3.30, and prices and initial number of shares in each of the stocks are given by: Initial Number Stock Price of Shares 16.00 2000 22.90 2000 24.20 1000 Suppose Stock A splits its shares 4:1 and Stock B splits its shares 2:1. What is the new index divisor that keeps the value of the index the same? Answer to two decimal points (ex: 1.25). Your Answer:
A price-weighted index contains three stocks: A, B and C The initial divisor is given by 3.30, and prices and initial number of shares in each of the stocks are given by: Initial Number Stock Price of Shares 16.00 2000 22.90 2000 24.20 1000 Suppose Stock A splits its shares 4:1 and Stock B splits its shares 2:1. What is the new index divisor that keeps the value of the index the same? Answer to two decimal points (ex: 1.25). Your Answer:
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Transcribed Image Text:A price-weighted index contains three stocks: A, B and C
The initial divisor is given by 3.30, and prices and initial number of shares in each of
the stocks are given by:
Initial Number
Stock Price
of Shares
A
16.00 2000
В
22.90 2000
C
24.201000
Suppose Stock A splits its shares 4:1 and Stock B splits its shares 2:1. What is the
new index divisor that keeps the value of the index the same?
Answer to two decimal points (ex: 1.25).
Your Answer:
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