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2. (Price-weighted index, divisor, return) Consider the three stocks in the following table. Pt represents the closing price at the end of day t and
2. (Price-weighted index, divisor, return) Consider the three stocks in the following table. Pt represents the closing price at the end of day t and Qt represents shares outstanding at the market close of day t. Stock C splits two-for-one just before the market opens on day 2 A 30 200 30 200 32 200 22 100 20 100 22 100 48 100 66 100 35 200 (a) If the value of the price-weighted index of the three stocks is 11,000 at the end of day 0 (t-0), what's the value of the divisor? (To 4 decimal places) (b) If the divisor is 0.4 at the end of day 1 (t-1) for the price-weighted index, what is the value of the new divisor just after stock C splits 2-for-1 (right before the market opens on day 2)? (To 4 decimal places) (c) If the value of the equally-weighted index of the three stocks is 2,500 at the end of day 1, what is the value of the equally-weighted index at the end of day 2
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