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Consider the following three stocks: Number of shares Stock Price outstanding Stock A $ 40 200 Stock B $ 70 500 Stock C $
Consider the following three stocks: Number of shares Stock Price outstanding Stock A $ 40 200 Stock B $ 70 500 Stock C $ 10 600 a. What is the price-weighted index constructed with the three stocks? b. Assume stock B is split 2 for 1 and stock C 4 for 1, what is the divisor? c. The next day after stock splits, the price of stock A increases 10%, the price of stock B decreases 10%, and the price of stock C does not change. What is the value of the index?
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Investments
Authors: Zvi Bodie, Alex Kane, Alan Marcus, Stylianos Perrakis, Peter
8th Canadian Edition
007133887X, 978-0071338875
