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2. Consider the following information about three components of a price-weighted index: Day 0 Day I Stock 200 500S4600 600 $60 S14 800 500 a.

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2. Consider the following information about three components of a price-weighted index: Day 0 Day I Stock 200 500S4600 600 $60 S14 800 500 a. What is the value of the price-weighted indes at the end of Day 1? (Hint: First find the new divisor after the 4 for 1 split of stock A). (20 Points) 130046 500 6o) 42 600 b. What is the price-weighted index's retum from Day 0to Day 1? (10 Points) c. What would have been the return on the index above if it had been a value-weighted index? (15

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