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QUESTION 1 If a stock index has 3 stocks with the following prices : $30, $45, and $55; What is the Price Weighted Index? Round
QUESTION 1 If a stock index has 3 stocks with the following prices : $30, $45, and $55; What is the Price Weighted Index? Round your answer to 2 decimal places (XX.XX) QUESTION 2 Assume the $45 stock from problem 1 announces a 3:1 split. What is the new divisor required to maintain the integrity of the index? Round your answer to 4 decimal places (XX.XXXX) QUESTION 3 If the stocks in the index from problem 1 above have shares outstanding of 2 million, 5 million and 10 million, respectively; what would the value weighted index be (rounded to $ millions with 2 decimal places XXXX.XX)
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