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 $130 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 2.47 and 2.94

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