Question
Suppose Stocks A, B and C are the only three component stocks in a benchmark index. The number of shares outstanding of Stocks A, B
Suppose Stocks A, B and C are the only three component stocks in a benchmark index. The number of shares outstanding of Stocks A, B and C are 356,000 shares, 329,000 shares, and 241,000 shares, respectively. The prices of Stocks A, B and C for Days 1, 2, 3 and 4 are given in the table below:
Stock A | Stock B | Stock C | |
Day 1 | 30.83 | 80.55 | 78.55 |
Day 2 | 31.23 | 44.31 | 78.58 |
Day 3 | 33.62 | 40.29 | 81.76 |
Day 4 | 34.43 | 42.25 | 78.1 |
Stock B had a 2-for-1 stock split on Day 2, which explained the drop in the price of Stock B.
If the benchmark value-weighted index was 1507.61 on Day 1, the benchmark value-weighted index on Day 3 was Answer. (Note: Answer must be correct to 2 decimal places, but you may leave your answer with more than 2 decimal places.)
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