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

question 88

Multiple Choice

A price-weighted index consists of stocks A, B, and C which are priced at $55, $38, and $17 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:

Emotional Pain

A deeply unpleasant emotional response resulting from significant loss, social rejection, or emotional neglect.

Somatosensory Cortex

A region of the brain that processes sensory information from various parts of the body, including touch, pain, and temperature.

Vomeronasal Organ

An auxiliary olfactory sense organ that is found in many animals and is believed to be involved in detecting pheromones.

Pheromones

Chemical substances produced and released into the environment by animals, affecting the behavior or physiology of others of its species.