Question: Consider a hypothetical price-weighted index created using the three stocks below: Stock Price before split Price after split Outstanding Shares (mil) before split Outstanding Shares

Consider a hypothetical price-weighted index created using the three stocks below:

Stock

Price before split

Price after split

Outstanding Shares (mil) before split

Outstanding Shares (mil) after split

X

$80 $80

400

400

Y

100 100

1000

1000

Z

70 7

500

5000

Yesterday before market close, Stock Z has completed a 10-for-1 split. Prices before and after the split are listed above. Before the split, you were holding 4 shares of each of the stocks.

Prior to Stock Zs 10-for-1 split, the 3-stock index's divisor is 3. What would be the new divisor after the split?

Round your answer to the nearest two decimal places, i.e., 0.01.

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