A Price-Weighted Index Consists of Stocks A,B,and C Which Are

question 52

Multiple Choice

A price-weighted index consists of stocks A,B,and C which are priced at $30,$12,and $18 a share,respectively.The current index divisor is 2.40.If stock C undergoes a 1-for-3 reverse stock split,the new index divisor will be:

• A) 1.92
• B) 2.11
• C) 2.20
• D) 3.08
• E) 3.12

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Definitions:

Sympathetic Nervous System

Part of the autonomic nervous system responsible for the body's fight or flight response.

Startle Reflex

An involuntary reaction to sudden or threatening stimuli, often characterized by quick physical movement away from the source.

Anxiety

A psychiatric state manifesting through severe worry, tension, or fright, affecting the ability to carry out day-to-day tasks.

Polygraph Test

A type of lie detector test that measures and records several physiological indices such as blood pressure, pulse, and skin conductivity while the subject is asked and answers a series of questions.