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Day 1 Stock Price Shares A $50 10,000,000 B $70 5,000,000 $60 12,000,000 a. The Day 1 price weighted index is $60. Assuming that Stock

Day 1 Stock Price Shares A $50 10,000,000 B $70 5,000,000 $60 12,000,000 a. The Day 1 price weighted index is $60. Assuming that Stock C has a 3 for 1 stock split and the price of Stock A increases by 5 percent, compute the Day 2 price weighted index. (9 pts) b. List and briefly discuss 2 important attributes of an index that will be used to benchmark investment portfolios. (6 pts) Day 1 Stock Price Shares A $50 10,000,000 B $70 5,000,000 $60 12,000,000 a. The Day 1 price weighted index is $60. Assuming that Stock C has a 3 for 1 stock split and the price of Stock A increases by 5 percent, compute the Day 2 price weighted index. (9 pts) b. List and briefly discuss 2 important attributes of an index that will be used to benchmark investment portfolios. (6 pts)

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