Which of the Following Would Not Be a Reason to Adjust

question 69

Multiple Choice

Which of the following would not be a reason to adjust the divisor of a price-weighted index?

• A) A stock in the index splits.
• B) A cash dividend is paid.
• C) A stock is dropped from the index and a new stock added.
• D) A stock in the index has a reverse stock split.
• E) All of the above are reasons to adjust the divisor.

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Unintended and unrecognized consequences of an institution or social phenomenon.

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