1) A price-weighted Index M consists of 3 stocks X, Y and Z. Last year their...

A price-weighted Index M consists of 3 stocks X, Y and Z. Last year their stock prices were $50, 15, and 22 respectively.

What is the new price-weighted index this year given that Stock X split 5-for-1 last year, and their current prices are $14, 17, 21?

A) 32.09

B) 29.14

C)15.88

D)17.33

2)A price-weighted Index ABC consists of 3 stocks A, B and C. Their recent prices are $105, 134, and 400 respectively. What is the new adjusted divisor right after stock C splits 2-for-1?

A)3.11

B)2.06

C)3.00

D)2.55

Given the following information, what is the value-weighted index in 2019?

Stock	# Shares	Prices in 2018	Prices in 2019
Wells Fargo	500	$25	$27
Disney	800	$104	$116
Alibaba	1,300	$202	$193

A)99.69

B)80.37

C)108.33

D)121.69

Solutions

Expert Solution

jeff jeffy answered 1 year ago

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