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Which of the following statements are correct? 1- Following a stock substitution or stock split, a price-weighted index remains the same and only its divisor
Which of the following statements are correct? 1- Following a stock substitution or stock split, a price-weighted index remains the same and only its divisor will change. II- Dow Jones Industrial average is a value-weighted index. III- In a value weighted index, large companies have a disproportionate influence on the index IV-In equally-weighted index, the movements are influenced by differential prices of the index components. 1) 1. ll only O2) 1 and ill only 3) ill and IV only 4) 1. lll and IV only 5). III and IV only
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