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 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?
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