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There are three stocks below: Stock A, B, C with price $40, $70, and $10 and number of oustanding shares as 200, 500, 600 reprectively.(
There are three stocks below:
Stock A, B, C with price $40, $70, and $10 and number of oustanding shares as 200, 500, 600 reprectively.( a) What is the value of the price-weighted index constructed with the three (b) What is the value-weighted index constructed with the three stocks if the initial value is $100? ( c) What would the value-weighted index be if stock B is split 2 for 1 and stock C 4 for 1?
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