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The table below reports the closing market prices (P) and shares outstanding (SO) for two stocks: ABC and XYZ. Note that stock XYZ has a 3 for 1 stock split which may, or may not, impact index construction. What divisor would we use in constructing the Price-Weighted Index at time period 1?
Period(1-3)
ABC
XYZ
P
SO
1
45.00
110
112.00
300
2
47.00
119.00
3
49.00
41.33
900
a) .7156
b) 1.0833
c) 1.6930
d) 2.0000
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