The Paws Index is a price weighted stock index based on the 3 largest pet food manufacturers in the nation. The stock prices for the three stocks are $30, $15, and $50. The price of the last stock was just split 3 for 1 and the stock price was reduced from $60 to $20. What is the new divisor for a price weighted index? 1.86

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Q: question 33

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Stock Market Indices

Stock indexes are used to compare the price fluctuations of a group of stocks of similar companies, which are combined based on a similar industry or a particular market capitalization limit or type of market. The price comparison is based on a pre-determined standard method or indicators. These stock indexes are usually considered a base for comparison of a particular stock, and the performance of that particular company can be easily determined.