Question: You are trying to create a stock index using three stocks. To recap, DJIA is a price-weighted index and S&P500 is a value-weighted index. Each

You are trying to create a stock index using three stocks. To recap, DJIA is a price-weighted index and S&P500 is a value-weighted index. Each stock's data at t=0 (begin of day) and t=1 (end of day) is provided below. Notice that Stock B is split 2 for 1. So, its price went down from $50 to $25, while the quantity went up from 80 to 160.

Stock Price (t=0) Quantity (t=0) Price (t=1) Quantity (t=1) A $10 40 $15 40 B $50 80 $25 160 C $140 50 $160 50 How much is the denominator used to compute the Price-Weighted index at t=1?

Enter your answer in the following format: 1.23 Hint: Answer is between 2.42 and 2.78

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