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The Hydro Index is a price weighted stock index based on the 5 largest boat manufacturers in the nation. The stock prices for the five
The Hydro Index is a price weighted stock index based on the 5 largest boat manufacturers in the nation. The stock prices for the five stocks are $10, $20, $80, $50 and $40. Assume that the initial divisor is equal to 5. The price of the last stock was just split 2 for 1 and the stock price was halved from $40 to $20. What is the new divisor for a price weighted index?
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A. 4.50
B. 4.75
C. 5.00
D. 4.85
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