5. A price-weighted index has 3 stocks: A, B and C. Their price at the start of the index was $35, $48 and $90.
What is the initial divisor if the index start with a value of 100?
By the end of the first year, the price of the 3 stocks is $40, $52 and $83 respectively. How much has the index gone up?
If stock C has a 3-for-1 split, what would be the new index value after one year?
Get Answers For Free
Most questions answered within 1 hours.