Question: Calculate the index's initial and final values using the price-weighted average method 2. Suppose LKC were to split three for one so that its

Calculate the index's initial and final values using the price-weighted average method

2. Suppose LKC were to split three for one so that its share price fell to $30. Calculate the new divisor, d, that leaves the average unaffected.

3. Suppose the index has a starting value of 100. Calculate the index's final value using the value-weighted average method.

Suppose you have an index that's composed of the following two stocks

Suppose you have an index that's composed of the following two stocks Stock Initial Price FRH 40 LKC 90 Total Final Price 50 75 Shares (million) 20 1 Initial Value of Final Value of Outstanding Shares $800 $90 $890 Outstanding Shares $1,000 $75 $1,075 1

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