USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)
*2:1 Split on Stock Z after Close on Jan. 13, 2005
**3:1 Split on Stock X after Close on Jan. 15, 2005
The base date for index calculations is January 13, 2005
-Refer to Exhibit 4.2. Calculate a price weighted average for January 16th.
A) 30
B) 32
C) 34
D) 36.13
E) No37

Question

USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)
  *2:1 Split on Stock Z after Close on Jan. 13, 2005
**3:1 Split on Stock X after Close on Jan. 15, 2005
The base date for index calculations is January 13, 2005
-Refer to Exhibit 4.2. Calculate a price weighted average for January 16th.
A) 30 
B) 32 
C) 34 
D) 36.13 
E) No37

Quizplus · Accepted Answer

The price-weighted average is calculated by adding up the prices of the stocks and dividing by the number of stocks. Assuming Exhibit 4.2 lists the prices of the stocks on January 16th, without the actual prices or number of stocks provided, the correct answer cannot be determined from the information given. However, if D) 36.13 is listed as an option, it suggests a calculation was made based on specific data. Normally, you would sum the prices of all stocks listed for January 16th and divide by the total number of stocks to get the price-weighted average.