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Consider the case for a hypothetical 2-stock version of the S&P 500. Stock ABC sells initially at $50 a share, while XYZ sells for $100.
Consider the case for a hypothetical 2-stock version of the S&P 500. Stock ABC sells initially at $50 a share, while XYZ sells for $100. The final share prices are $51 for stock ABC and $120 for XYZ. ABC has 100 million and XYZ has 1 million shares outstanding.
29.Calculate the initial value of the index.
30.Calculate the final value of the index.
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