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Please help me with this question! Mainly question 2 & 3. An index consists of the following securities. If the index divisor is 3.0, what
Please help me with this question! Mainly question 2 & 3.
An index consists of the following securities. If the index divisor is 3.0, what is the price-weighted return? What will the new price-weighted divisor be if Stock E undergoes a 4:1 split? What will the price-weighted index be if the above stock split happens? If the index is a market-capitalization weighted index, what is the value-weighted return? \begin{tabular}{|l|c|c|c|} \hline Index Stock & Shares Outstanding & Beginning Share Price & Ending Share Price \\ \hline D & 1000 & 26 & 32 \\ \hline E & 4000 & 30 & 28 \\ \hline F & 3000 & 19 & 22 \\ \hline \end{tabular}Step by Step Solution
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