Answers to Study Problem Set 1B

Answers to Study Problem Set 1B - Answers to Study Problem...

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Answers to Study Problem Set 1B 6F111 1. a. (1) I 1 = (60+40)/2 = 50 (2) ΔI/I = (50-40)/40 = 10/40 = ¼ or 25%. b. (1) The post-split value of the index is the same as the pre-split value of the index, namely 50. (2) To calculate the new divisor, calculate D new = (40+20)/50 =6/5. c.
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This note was uploaded on 09/27/2010 for the course BUSINESS 6F:111 taught by Professor Tongyao during the Spring '09 term at University of Iowa.

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