USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)
Stocks W and X had 2 for 1 splits after the close on Dec 31, 2003.

-Refer to Exhibit 4.5. Calculate the value weighted index for Dec 31, 2003, after the splits. Assume a base index value of 100. The base year is Dec 31, 2003.
A) 72.5
B) 81.69
C) 100.0
D) 120.0
E) 121.25

Question

USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)
  Stocks W and X had 2 for 1 splits after the close on Dec 31, 2003.
​
-Refer to Exhibit 4.5. Calculate the value weighted index for Dec 31, 2003, after the splits. Assume a base index value of 100. The base year is Dec 31, 2003.
A) 72.5 
B) 81.69 
C) 100.0 
D) 120.0 
E) 121.25

Quizplus · Accepted Answer

Given that the base year is Dec 31, 2003, and the base index value is set to 100, the value-weighted index for Dec 31, 2003, would remain 100 by definition, as it reflects the starting point or base value of the index.