Multiple Choice
Which of the following would not be a reason to adjust the divisor of a price-weighted index?
A) A stock in the index splits.
B) A cash dividend is paid.
C) A stock is dropped from the index and a new stock added.
D) A stock in the index has a reverse stock split.
E) All of the above are reasons to adjust the divisor.
Correct Answer:
Verified
Correct Answer:
Verified
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