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QUESTION 12 1 Consider the prices of the stock that Peter Belch, manager of the index...

QUESTION 12

1 Consider the prices of the stock that Peter Belch, manager of the index fund:

Company X $50

Company Y $74

Company Z $86

Peter Belch maintains a price-weighting for its index. What is the new index denominator if Company Z announced a stock split of 4-for-l?

a. 2.500

b. 3.586

c. 2.079



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