Index EHFI28 is a price weighted index composed of five stocks, A, B, C, D & F with an initial divisor of 5. The following is price data for the Index is the following:

a) What is the initial value of the index?

b) What is the divisor after Price Change 1 assuming that there are no non-market related events to the members?

c) What is the value of the index after Price Change 1?

d) Now assume that stocks A, C and D, have the same price change, but stock B has a 1 for 2 split and F has a 4 for 1 reverse split. Assuming no market related price changes occur for B and F from their initial prices, please answer the following:

i) What is the split adjusted price of B

ii) What is the split adjusted price of F

iii) What is the new divisor after the split

iv) What is the value of the index after the split and price changes

Index EHF128 Stocks Initial Price Price Change 1 A 110 130 B 50 58 400 375 ID 210 250 IF 40 20