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, after the splits. Assume a base index value of 100. The base year is Dec 31, 2003.
A) 110.0
B) 200.0
C) 100.0
D) 120.0
E) 150.0

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, after the splits. Assume a base index value of 100. The base year is Dec 31, 2003.
A) 110.0 
B) 200.0 
C) 100.0 
D) 120.0 
E) 150.0

Quizplus · Accepted Answer

Since the base year is Dec 31, 2003, and the index is calculated for the same date with a base value of 100, the unweighted index for Dec 31, 2003, would still be 100, regardless of any stock splits, because the index is recalculated to reflect these changes but starts from its base value on its base date.