Question: 2.) (8 points) There are two stocks, A and B, which make up a particular market cap weighted index. Given below are the closing prices

2.) (8 points) There are two stocks, A and B, which

2.) (8 points) There are two stocks, A and B, which make up a particular market cap weighted index. Given below are the closing prices and number of shares outstanding for each stock for yesterday and today. Stock B split 4-for-1 today before the market opened. What is the value of the index after the close today if the index contains stocks A and B? The index closed yesterday at 1,200 (before stock B split 4- for-1). Closing price of stock A Shares outstanding for stock A Closing price of stock B Shares outstanding for stock B Index value Yesterday $60 300 $200 100 1,200 Today $63 300 $52

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