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medium · CFA Level I Equity Investments

A price-weighted index consists of three stocks: Oakridge Capital ($100), Meridian Pack ($20), and Vesper Foods ($60).

If Oakridge Capital undergoes a 2-for-1 stock split, the new index divisor, assuming the initial divisor was 3, is closest to:

  1. 2.167
  2. 1.500
  3. 3.000

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