Calculate the index's initial and final values using the price-weighted average method
 

2. Suppose LKC were to split three for one so that its share price fell to $30.  Calculate the new divisor, d, that leaves the average unaffected.

 

3. Suppose the index has a starting value of 100. Calculate the index's final value using the value-weighted average method.

 

Suppose you have an index that's composed of the following two stocks Stock Initial Price FRH 40 LKC 90 Total Final Price 50 75 Shares (million) 20 1 Initial Value of Final Value of Outstanding Shares $800 $90 $890 Outstanding Shares $1,000 $75 $1,075 1