Question: 1. (24 points) Use data from the table below to answer this question: Day 0 Day 1 Price # shares Price # shares Stock 9

1. (24 points) Use data from the table below to answer

1. (24 points) Use data from the table below to answer this question: Day 0 Day 1 Price # shares Price # shares Stock 9 17,000 7 17,000 18 | 23,000 | 10 23,000 9,000 | 135 9,000 | 42 | 12,000 60 12,000 87 UA a. (8 points) The price-weighted index on day 0 is computed with only the three stocks A, B and C. The index value on day 0 is 100. i. Compute the divisor on day 0. ii. What is the return on the price-weighted index on day 1? iii. Stock C is split 5-for-1 after the close of Day 1. What is the divisor for the price-weighted index after the split? iv. After the close of market on Day 1, Stock C is replaced by Stock D in the price-weighted index, and the new index is computed with only Stocks A, B and D. Compute the new divisor and the index value after this change to the index composition

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