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A price weighted stock index has stocks AAC, BZF, and CHO in it. It is at 550 on 21-Oct-2019. CHO is replaced at the end
A price weighted stock index has stocks AAC, BZF, and CHO in it. It is at 550 on 21-Oct-2019. CHO is replaced at the end of day trading on 22-Oct-2019 with DIY. What is the value of the index on 23Oct-2019 with the new divisor to take account of the replacement of CHO with DIY (take the answer to 2 decimal places)?
21-Oct-19 22-Oct-19 AAC BZF CHO DIY $75.00 $150.00 $10.00 $106.00 $80.00 $140.00 $12.00 $107.00 23-Oct-19 Shares Outstanding (in thousands) $82.00 1,000 $135.00 800 50,000 $104.00 8,000 $8.00 21-Oct-19 22-Oct-19 AAC BZF CHO DIY $75.00 $150.00 $10.00 $106.00 $80.00 $140.00 $12.00 $107.00 23-Oct-19 Shares Outstanding (in thousands) $82.00 1,000 $135.00 800 50,000 $104.00 8,000 $8.00Step by Step Solution
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