Consider the Following Three Stocks Assume at These Prices That the Value-Weighted Index Constructed with \text

question 64

Multiple Choice

Consider the following three stocks: $\begin{array}{lll}\text { Stock } & \text { Price Number of shares}& \text { outstanding } \\\text { Stock A } & \$ 40 & 200 \\\text { Stock B } & \$ 70 & 500 \\\text { Stock C } & \$ 10 & 600\end{array}$
Assume at these prices that the value-weighted index constructed with the three stocks is 490. What would the index be if stock B is split 2 for 1 and stock C 4 for 1?

• A) 265
• B) 430
• C) 355
• D) 490
• E) 1000

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Definitions:

Self-Deceptive Techniques

Self-deceptive techniques are psychological strategies individuals use to deny or rationalize their own behavior, thoughts, and feelings to protect their self-esteem or avoid facing uncomfortable truths.

Psychosis

A mental disorder characterized by a disconnection from reality, which might include delusions, hallucinations, and disordered thinking.

Unconscious

Part of the mind that operates outside of conscious awareness, containing thoughts, memories, and desires believed to influence behavior.

Maladaptive

Behaviors or thoughts that inhibit an individual's ability to adjust healthily to particular situations.