The Hydro Index Is a Price Weighted Stock Index Based

question 38

Multiple Choice

The Hydro Index is a price weighted stock index based on the 5 largest boat manufacturers in the nation. The stock prices for the five stocks are $10, $20, $80, $50 and $40. The price of the last stock was just split 2 for 1 and the stock price was halved from $40 to $20. What is the new divisor for a price weighted index?

• A) 5.00
• B) 4.85
• C) 4.50
• D) 4.75

---

Definitions:

Awarding Pay Increases

The process of granting employees a raise in their salary or wage, typically in recognition of their performance, inflation adjustment, or promotion.

Job-Based Pay Structures

Compensation frameworks that determine an employee's salary based on the specific job role rather than individual performance or characteristics.

Promotions

The advancement of an employee to a higher position within an organization, typically accompanied by an increase in salary and responsibilities.

Lateral Career Moves

Involves moving to a different position within the same level of hierarchy within an organization, often to gain a broader range of experience or skills without necessarily obtaining a promotion.