Consider three stocks, X, Y, and Z, with the following closing prices on two particular dates:

On date 1 there are 100 shares of stock X, 200 shares of stock Y, and 100 shares of stock Z outstanding.
a. Construct a price-weighted market index using the three stocks, X, Y, and Z. What is the index's value on date 1?
b. What is the price-weighted index's value on date 2?
c. Assume that, on date 2, stock X splits 4-for-1. What is the price-weighted index's value on that date?
d. Construct a value-weighted index using the three stocks. Assign the value-weighted index a value of 100 on date 1. What is the index's value on date 2?

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Stock Date 1 Date 2 $16 $22 Z. 24 30