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1. A price-weighted index has 3 stocks: A, B and C. Their price at the start of the index was $35, $48 and $90. What
1. A price-weighted index has 3 stocks: A, B and C. Their price at the start of the index was $35, $48 and $90.
What is the initial divisor if the index start with a value of 100?
By the end of the first year, the price of the 3 stocks is $40, $52 and $83 respectively. How much has the index gone up?
If stock C has a 3-for-1 split, what would be the new index value after one year?
2. Look up the stock price for GOOGL and DWDP, as well as the divisor value for DJIA in Feb 5th, 2018. How would the divisor value changed if GOOGL is to replace DWDP?
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