out of 30 points Use data from the table below to answer this question: Day 0 Day 1 Price(S) # shares Price($) # shares Stock A 9 12 B 15 18,000 20,000 10,000 10 120 18,000 20,000 10,000 O 80 D 45 12.000 60 12,000 Note: the columns, #shares, on day 0 and day 1 indicate the total share outstanding for each stock. Suppose we want to construct indices using all four stocks above, and we choose the divisor for the price-weighted index on day 0 to be 4 and the divisor for the value-weighted index to be 10,000. Also, assume the equal-weighted index starts at 100,000 on day 0. 1. Calculate the index level for price-weighted, value-weighted, and equal-weighted indices at day 0. (9) 2. Calculate the index level for price-weighted, value-weighted, and equal-weighted indices at day 1. (9) 3. Calculate the return of each index by the end of day 1. (3) 4. After the market is closed on day 1, company C declares a 20% cash dividend per share, leading to a reduction in its stock price from $120 to $96(-$120*(1-20%)). which indices need to be adjusted? How will you make the adjustment(s)? (9) QUESTION 3: SHORT ANSWER out of 30 points Use data from the table below to answer this question: Day 0 Day 1 Price(S) # shares Price($) # shares Stock A 9 12 B 15 18,000 20,000 10,000 10 120 18,000 20,000 10,000 O 80 D 45 12.000 60 12,000 Note: the columns, #shares, on day 0 and day 1 indicate the total share outstanding for each stock. Suppose we want to construct indices using all four stocks above, and we choose the divisor for the price-weighted index on day 0 to be 4 and the divisor for the value-weighted index to be 10,000. Also, assume the equal-weighted index starts at 100,000 on day 0. 1. Calculate the index level for price-weighted, value-weighted, and equal-weighted indices at day 0. (9) 2. Calculate the index level for price-weighted, value-weighted, and equal-weighted indices at day 1. (9) 3. Calculate the return of each index by the end of day 1. (3) 4. After the market is closed on day 1, company C declares a 20% cash dividend per share, leading to a reduction in its stock price from $120 to $96(-$120*(1-20%)). which indices need to be adjusted? How will you make the adjustment(s)? (9) QUESTION 3: SHORT