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A price-weighted index consists of stocks A, B, and C which are priced at $50, $35,...

A price-weighted index consists of stocks A, B, and C which are priced at $50, $35, and $15 a share, respectively. The current index divisor is 2.75. What will the new index advisor be if stock A undergoes a 5-for-1 stock split?

Multiple Choice

A. 0.40

B. 0.65

C. 1.00

D. 1.65

1.85

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