Question
https://media.cheggcdn.com/study/639/639e21e8-246f-49e3-8603-19e81bd5a587/image.png The Hydro Index is a price weighted stock index based on the 4 largest boat manufacturers in the nation. Consider the four stocks in
https://media.cheggcdn.com/study/639/639e21e8-246f-49e3-8603-19e81bd5a587/image.png
The Hydro Index is a price weighted stock index based on the 4 largest boat manufacturers in the nation. Consider the four stocks in the following table. Pt represents price at time t, and Qt represents shares outstanding at time t. (Please pay close attention to stock split)
| P0 | Q0 | P1 | Q1 | P2 | Q2 |
A | 80 | 200 | 85 | 200 | 90 | 200 |
B | 50 | 300 | 70 | 300 | 35 | 300 |
C | 65 | 200 | 67 | 200 | 70 | 200 |
a. What is the divisor for the price weighted index in year 2?
b. What is the price weighted index at t=1?
c. What is the price weighted index at t=2?
Please make it more detailed How will I know where is the stock split ?
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