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1. Stock Day 1 Price Shares 1 $75 1,500 2 $128 2,000 A company creates a price-weighted index consisting of the stocks listed above. What

1.

Stock

Day 1

Price

Shares

1

$75

1,500

2

$128

2,000

A company creates a price-weighted index consisting of the stocks listed above. What is the Day 1 divisor for the index?

2. A company wants to create a market value-weighted index from a group of stocks with a total market capitalization of $600,000. If the desired initial index value is 1,500, then what is the divisor?

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