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 unweighted index for Dec 31, 2003, prior to the splits. Assume a base index value of 100. The base year is Dec 31, 2003.
A) 100.0
B) 200.0
C) 150.0
D) 120.0
E) 175.0

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 unweighted index for Dec 31, 2003, prior to the splits. Assume a base index value of 100. The base year is Dec 31, 2003.
A) 100.0 
B) 200.0 
C) 150.0 
D) 120.0 
E) 175.0

Quizplus · Accepted Answer

Since the question asks for the unweighted index prior to the stock splits, we do not need to adjust the stock prices for the splits. Using the given information in Exhibit 4.5, we can calculate the unweighted index as follows:

Unweighted index = (W + X + Y + Z) / 4
Unweighted index = (20 + 30 + 40 + 10) / 4
Unweighted index = 100

Therefore, the best choice is A) 100.0.