Consider a price-weighted index comprised of three stocks, which were closed at $20, $40 and $120. Then

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Consider a price-weighted index comprised of three stocks, which were closed at $20, $40 and $120. Then the third stock announced a 2-for-1 stock split.

What should the new divisor for the index?

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Statistics For Business Decision Making And Analysis

ISBN: 9780134497167

3rd Edition

Authors: Robert A. Stine, Dean Foster

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Posted Date: Jun 20, 2023 12:56 AM

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Consider a price-weighted index comprised of three stocks, which were closed at $20, $40 and $120. Then

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In a priceweighted index the value of the index is calculated by adding the prices of each of the st... View the full answer

Statistics For Business Decision Making And Analysis

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