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The Metro Index is a price-weighted stock index based on 5 large industrial stocks. The stock prices for the five stocks are $80, $20, $10,
The Metro Index is a price-weighted stock index based on 5 large industrial stocks. The stock prices for the five stocks are $80, $20, $10, $50 and $40. Given its divisor of 0.125, the index value is now 1,600. The price of the first stock was just split 2 for 1 and its price was halved from $80 to $40. What is the new divisor for the price-weighted index? A. 0.100 B. 0.111 C. 0.130 D. 0.133
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