Question
A price-weighted index consists of stocks A, B, and C which are priced at $38, $21, and $26 a share, respectively. The current index divisor
A price-weighted index consists of stocks A, B, and C which are priced at $38, $21, and $26 a share, respectively. The current index divisor is 2.5. What will the new index divisor be if stock B undergoes a 3-for-1 stock split?
A) 2.0882
B) 2.2553
C) 2.5890
D) 2.7000
E) 3.1447
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The Socionomic Theory Of Finance
Authors: Robert R. Prechter
1st Edition
0977611256, 978-0977611256
