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QUESTION 12 Value-weighted indices are biased toward high book value stocks. True False 5 points QUESTION 13 A price-weighted index consists of stocks X, Y,
QUESTION 12
Value-weighted indices are biased toward high book value stocks.
True
False
5 points
QUESTION 13
A price-weighted index consists of stocks X, Y, and Z which are priced at $50, $90, and $80 per share, respectively. The current index divisor is 3.2. What will the new index divisor be if stock Z undergoes a 1:2 stock split? Round intermediate steps to four decimals.
4.3636 | ||
2.6182 | ||
2.5455 | ||
4.5091 |
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