Consider the Following Three Stocks Assume at These Prices the Value-Weighted Index Constructed with the }

Multiple Choice

Consider the following three stocks: $$\begin{array} { l c c } \text { Stock } & \text { Price } & \text { Number of shares outstanding } \\\hline \text { Stock A } & \$ 40 & 200 \\\text { Stock B } & \$ 70 & 500 \\\text { Stock C } & \$ 10 & 600\end{array}$$
Assume at these prices the value-weighted index constructed with the three stocks is 490.What would the index be if stock B is split 2 for 1 and stock C 4 for 1?

A) 265
B) 430
C) 355
D) 490
E) 1000