Question: Please help me with the second and third question! An index consists of the following securities. If the index divisor is 3.0, what is the
Please help me with the second and third question!
An index consists of the following securities. If the index divisor is 3.0, what is the price-weighted return? What will the new price-weighted divisor be if Stock E undergoes a 4:1 split? What will the price-weighted index be if the above stock split happens? If the index is a market-capitalization weighted index, what is the value-weighted return? \begin{tabular}{|l|c|c|c} \hline & & & \\ \hline Index Stock & Shares Outstanding & Beginning Share Price & Ending Share Price \\ \hline D & 1000 & 26 & 32 \\ \hline E & 4000 & 30 & 28 \\ \hline F & 3000 & 19 & 22 \\ \hline \end{tabular}
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