The following table shows the price movements of three stocks that comprise a pr
ID: 2732434 • Letter: T
Question
The following table shows the price movements of three stocks that comprise a price-weighted index. Use this table to answer the next two questions.
*4:1 split on stock Y after close on 1/3/2012
**2:1 split on stock Z after close on 1/4/2012
***3:4 reverse split on stock X after close on 1/5/2012
The base date for the index is Jan. 2, 2012
Calculate the divisor used for the opening of Jan. 6, 2012. Round intermediate steps and your
final answer to four decimals.
1.2733
1.3137
1.2811
1.3571
Find the percentage change in the index from 1/4-1/5. Round intermediate steps and your final
answer to four decimals.
-.0231
.0211
.0207
.0236
Stock Price Date Jan. 2, 2012 Jan. 3, 2012 Jan. 4, 2012 Jan. 5, 2012 150 170 165** 85 40 12 100 95* 12*** 24Explanation / Answer
Answer
Answer 2
Particulars
X
Y
Z
Total
Jan 4. 2012
14
22
82.5
118.5
(Adjusted for spit)
Jan 5. 2012
12
24
85
121
Change
2.5
% Change (2.5/118.5)
0.0211
Answer : The percentage change in the index from 1/4-1/5 is 0.0211
Particulars
X
Y
Z
Total
Jan 4. 2012
14
22
82.5
118.5
(Adjusted for spit)
Jan 5. 2012
12
24
85
121
Change
2.5
% Change (2.5/118.5)
0.0211
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