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Correct Answer is provided. I just can't figure out how to get there. Question 2 0 out of 10 points A market value weighted index has three stocks in it, call them A, B, and C, priced at 88, 94,

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Answer #1

With removal of a stock, index level remains unchanged

Hence,

Index Value=763
Index value=Sum(Number of shares*Share Price)/Divisor=(324000*88+206000*94+241000*23)/Divisor

=>Divisor=(324000*88+206000*94+241000*23)/763
=>Divisor=70011.79554


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