The Hydro Index Is a Price Weighted Stock Index Based

Multiple Choice

The Hydro Index is a price weighted stock index based on the 5 largest boat manufacturers in the nation. The stock prices for the five stocks are $10, $20, $80, $50 and $40. The price of the last stock was just split 2 for 1 and the stock price was halved from $40 to $20. What is the new divisor for a price weighted index?

A) 5.00
B) 4.85
C) 4.50
D) 4.75