Calculate the price-weighted and value-weighted market

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Stock A sells at $30 and has 40 million shares outstanding in the market. Stock B sells at $45 and has 20 million outstanding shares. Stock C sells $24 and 5 million shares out standing.

a) Calculate the price-weighted and value-weighted market index composed of these three stocks.
b) If stock A is split two for one, how would adjust your answer in part (a)?

 

Reference no: EM13298668

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