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BA 365 - Investment (Stock Market) 3. A price-weighted index PWI initially consisted of three stocks, A, B, and C with prices at different time

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BA 365 - Investment (Stock Market) 3. A price-weighted index PWI initially consisted of three stocks, A, B, and C with prices at different time shown in the table below: Stock Price Symbol October 30, 2016 Feb. 1, July 14, 2016 2016 2016 Just Before Just After Before Index After Index Split Component Component May 4, Split 18 18 20 Replacement Replacement Stock removed from the index 12 32 10 10 15 16 20 30 18 28 10 30 12 32 30 Index On July 14, 2016, stock B split 1:2. It means that for each share B two new shares were issued to replace the old shares (old shares price was 20 on that day and the price of new shares was 10) On October 30, 2016, stock A was removed from the index and stock D was added to the index. Just before the removal price for stock A was 16 per share. Calculate index starting from Feb.1, 2016 for all days in the table and put these values in the table

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