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Question
Global Stock Index is a value weighted index with just 2 stocks in the index: ABC stock and XYZ stock. ABC ended 2005 at a price of $55 and had 1 million shares outstanding. XYZ stock ended 2005 at a price of $32 and had 4 million shares outstanding. ABC ended 2006 at a price of $29 (after a 2-for-1 split). XYZ stock closed at $35 for 2006. Calculate the new value of the index.Answer
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