Question
attached photo is more clear Question 3 To following table shows the price movements of three stocks that comprise a price-weighted index. Use the table
attached photo is more clear
Question 3
To following table shows the price movements of three stocks that comprise a price-weighted index. Use the table to answer the next two questions.
Stock Price Date x y z
jan 2 2012 40 100 150
jan 3 2012 12 95* 170
jan 4 2012 14 22 165**
jan 5 2012 12*** 24 85
DATA OF THE QUESTION:
*4:1 split on stock Y after close on 1/3/2012
**2:1 split on stock Z after close on 1/4/2012
*** 3:4 reverse split on stock X after close on 1/5/2012
the base date for the index is jan 2 2012
calculate the divisor used for the opening of jan 6 2012. Roundintermediate steps and your final answer to four decimals
A. 1.2733 B.1.3137 C.1.2811 D.1.3571
question 4
Find the percentage hange in the index from 1/4-1/15. Round intermediate spets and your final answer to four decimals.
answers a-0.0231 b. 0.0211 c. 0.0207 d. 0.0236
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