Using the following table. What denominator would you use to create the price weighted index, if stock EFG got split 5 times in the initial period(Price is now $5, and the number of shares is 500). Assume that the value of the Index is 45. Stock Initial Price EFG HIJ 25 65 Final Price 26 62 Shares 100 35
Using the following table. What denominator would you use to create the price weighted index, if stock EFG got split 5 times in the initial period(Price is now $5, and the number of shares is 500). Assume that the value of the Index is 45. Stock Initial Price EFG HIJ 25 65 Final Price 26 62 Shares 100 35
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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Transcribed Image Text:Using the following table. What denominator would you
use to create the price weighted index, if stock EFG got
split 5 times in the initial period(Price is now $5, and the
number of shares is 500). Assume that the value of the
Index is 45.
Stock Initial Price
EFG
HIJ
25
65
Final Price
26
Shares
100
35
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