Problem
The EV Index is a price weighted stock index based on the 3 largest electric vehicle manufacturers in the nation. Consider these stocks in the following table. Pt represents price at time t, and Qt represents shares outstanding at time t. (Please pay close attention to stock split)
|
P0
|
Q0
|
P1
|
Q1
|
P2
|
Q2
|
|
A
|
80
|
200
|
85
|
200
|
90
|
200
|
|
B
|
60
|
300
|
70
|
300
|
35
|
600
|
|
C
|
65
|
200
|
67
|
200
|
70
|
200
|
1. What is the divisor for the price weighted index in year 2? (sample answer: 2.55)
2. What is the price weighted index at t=1? (sample answer: 156.45)
3. What is the price weighted index at t=2?