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In a price-weighted index (PWI), the stock price of three companies, X, Y, and Z,...

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Finance

In a price-weighted index (PWI), the stock price of three companies, X, Y, and Z, were $60, $40, $20, respectively. The initial PWI, therefore, equals 40.

If all companies applied two-for-one stock splits, what is the value of the divisor that guarantees the PWI remains unchanged? (Round to two decimal points).

1.00

1.50

2.00

1.75

1.25

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