Suppose there is a price$$weighted index composed of three stocks:

Prices

Stocks Before Split After Split

A $4020$

B $3535$

C $2525$

Now stock A announced a $2$ for $1$ split.

$$ If the divisor was $5$ before the split, what should be the new divisor after the stock split in A$?$

$$ If you originally held a portfolio tracking the performance of this index, with $4,000$ shares in

each of the three stocks, what adjustment do you need to make so that your portfolio still tracks

this price weighted index?