Assume that you construct a price-weighted index of 15 stocks. The sum of the prices of these
Question:
a. If you make no adjustment to the index, what will be the new value of the index?
b. What does the new divisor have to be to keep the value of the index unchanged at 100?
Stocks
Stocks or shares are generally equity instruments that provide the largest source of raising funds in any public or private listed company's. The instruments are issued on a stock exchange from where a large number of general public who are willing...
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This problem illustrates how stock splits can affect a priceweighted avera...View the full answer
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Somshukla Chakraborty
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