There are three stocks in the index alpha, beta, and gamma. The stocks sell for $102 $345 and $87 respectively. If beta undergoes a 3 for 1 stock split, what is the new divisor for the price weighted index? a) 2.34 b) 7.81 c) 1.71 d) 2.07

There are three stocks in the index alpha, beta, and gamma. The stocks sell for $102 $345 and $87 respectively. If beta undergoes a 3 for 1 stock split, what is the new divisor for the price weighted index? a) 2.34 b) 7.81 c) 1.71 d) 2.07

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

Problem 1PS

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There are three stocks in the index alpha, beta, and gamma. The stocks sell for $102 $345
and $87 respectively. If beta undergoes a 3 for 1 stock split, what is the new divisor for the
price weighted index?
(a) 2.34
(b) 7.81
(c) 1.71
(d) 2.07

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