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2. (10 Points) The Boat Index is a stock index based on the 3 largest boat manufacturers ( A,B, C). The stock prices for the

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2. (10 Points) The Boat Index is a stock index based on the 3 largest boat manufacturers ( A,B, C). The stock prices for the three boat stocks are $10,$30 and $20. There are 1MM shares of stock outstanding for each of the 3 boat stocks. Immediately after the Boat Index is established, C's stock splits 2 for 1 . There are no other changes at this point. (PUT YOUR WORK IN A TABLE). Assuming the Boat Index were a price weighted (DOW) index; a. What is the divisor before the stock split? b. What is the index value before the stock split? c. What is the divisor after the split? d. What is the index value after the split? Assume the Boat Index were a market weighted (S\&P) index; e. What is the index value before the split? f. How many shares are in the index before the split? g. What is the index value after the split? h. How many shares are in the index after the split? One year after the split, C's stock price returns to $20 again and all the other stock price re unchanged. What \% return would the: i. The price weighted index report j. The market weighted index report

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