Question: Consider the data in the following table for a hypothetical two-stock version of the Dow Jones Industrial Average. Stock ABC XYZ Initial Price $30

Consider the data in the following table for a hypothetical two-stock version

Consider the data in the following table for a hypothetical two-stock version of the Dow Jones Industrial Average. Stock ABC XYZ Initial Price $30 70 Final Price Shares (millions) $40 60 a) Calculate the percentage change in the index value. (0.5 point) 20 1 b) Suppose firm XYZ from part (a) were to split two for one during the period (price drops to $35 immediately after the split and the new final price is $30). Calculate the percentage change in the index value. (1 point) c) If this was for S&P500-type index, what is the percentage change in the index value? Is it affected by the stock split of firm XYZ? (0.5 point)

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