Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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 359,000 shares, 345,000 shares, and 240,000 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

31.30

80.53

79.71

Day 2

31.34

38.81

79.69

Day 3

33.94

44.56

80.07

Day 4

33.25

44.16

78.78

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 1572.57 on Day 1, the benchmark value-weighted index on Day 4 was ??????

Can someone please explain how to get the answer?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

American Public School Finance

Authors: William Owings, Leslie Kaplan

2nd Edition

1111838046, 978-1111838041

More Books

Students also viewed these Finance questions

Question

4. Find an event that has a probability of 1.000.

Answered: 1 week ago

Question

Prove that the language is not regular. Hint use Pumping Lemma

Answered: 1 week ago

Question

How do people respond to cultural diff erences in communication?

Answered: 1 week ago

Question

How does communication shape cultures and social communities?

Answered: 1 week ago