[See Solution] An index consists of the following securities Stock Shares Outstanding Yesterday's Price Today's Price A 1,000 $32 $38 B 4,000 $22 $23 C
Question: An index consists of the following securities
| Stock | Shares Outstanding | Yesterday's Price | Today's Price |
| A | 1,000 | $32 | $38 |
| B | 4,000 | $22 | $23 |
| C | 6,000 | $57 | $55 |
Suppose the index is price-weighted. Current index divisor is 2.7. If after today, Stock B experience a 3-for-1 split. What is the new divisor?
If the index is value-weighted, what is the index level? Use yesterday as a base. Assume yesterday's index level is 1,000.
- If the index is equally weighted. You have $1000 in the index yesterday. How should you rebalance your positions today?
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