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Please show all work. Little if any credit will be received for answers without work. Use the following information for Problem 5. The data are
Please show all work. Little if any credit will be received for answers without work.
Use the following information for Problem 5. The data are for a price-weighted index (e.g., Dow 30).
Stock Initial Price ($) Final Price ($)
A 500 650
B 300 420
5.
a) What is the initial value of the index?
b) If Stock B does a 2-for-1 split at the beginning of the period, what is the divisor d that preserves the index's value?
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