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

question 25

Multiple Choice

A price-weighted index consists of stocks A,B,and C which are priced at $50,$35,and $15 a share,respectively.The current index divisor is 2.75.What will the new index advisor be if stock A undergoes a 5-for-1 stock split?

• A) 0.40
• B) 0.65
• C) 1.00
• D) 1.65
• E) 1.85

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Definitions:

Ego

A part of the mind that mediates between the conscious and the unconscious and is responsible for reality testing and personal identity.

Major Systems

Refers to the primary or dominant frameworks, organizations, or structures within a particular field or society.

Psychic Energy

Theoretical construct in psychology that represents the power or drive behind human thoughts, feelings, and behaviors.

Libido

A term primarily used in psychoanalytic theory to denote the sexual energy or drive within human beings.