Question

A price-weighted index consists of four stocks. Here are their
prices: P_{A}=$ 10; P_{B}=$ 25; P_{C}= $
24; P_{D}= $ 36

Stock C has a 3:1 stock split. What will be the new divisor? (Round your answer to two decimals)

Answer #1

**SEE THE IMAGE. ANY DOUBTS,
FEEL FREE TO ASK. THUMBS UP PLEASE**

**D =3.33**

A price-weighted index consists of stocks A, B, and C which are
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Assume that you construct a price weighted index of 30 stocks.
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unchanged.
a) If you make no adjustments to the index, what will be the new
value of the...

An index consists of three stocks (A, B, C). The prices of these
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3-for-1 stock split, what is the new index divisor?

A price-weighted index consists of stocks A, B, and C which are
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B. 0.65
C. 1.00
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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

Problem 5-1 Price-Weighted Divisor (LO4, CFA2)
Able, Baker, and Charlie are the only three stocks in an index.
The stocks sell for $38, $200, and $106, respectively. If Baker
undergoes a 3-for-2 stock split, what is the new divisor for the
price-weighted index? (Do not round intermediate
calculations. Round your answer to 5 decimal places.)

You construct a price-weighted index of 33 stocks. At the
beginning of the day, the index is 9,241.90. During the day, 32
stock prices remain the same, and 1 stock price increases $4.10. At
the end of the day, your index value is 9,267.86. What is the
divisor on your index? (Do not round intermediate calculations.
Round your answer to 8 decimal places.)

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
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The Hydro Index is a price weighted stock index based on the 4
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in the following table. Pt represents price at time t,
and Qt represents shares outstanding at time t. (Please pay close
attention to stock split)
P0
Q0
P1
Q1
P2
Q2
A
80
200
90
200
98
200
B
50
300
40
300
50
300
C
90
200
110
200
115
200
D
100
100
90
100...

An index consists of the following securities and has an index
divisor of 3.0. What is the price-weighted index return?
Stock
Shares O/S
Begin Price
End Price
A
3,500
$
20
$
24
B
6,000
$
15
$
10
C
4,000
$
28
$
36

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