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

question 14

Multiple Choice

Consider the following three stocks: $$\begin{array} { l c c } \text { Stock } & \text { Price } & \text { Number of shares } \\\text { Stock A } & \$ 40 & 200 \\\text { Stock B } & \$ 70 & 500 \\\text { Stock C } & \$ 10 & 600 \\\hline\end{array}$$ 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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A research method that focuses on obtaining and analyzing numerical data for statistical analysis.

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The relationship between cause and effect, where one event (the cause) directly leads to the outcome (the effect).