question archive On a given day, suppose that:a
On a given day, suppose that:a
Subject:FinancePrice: Bought3
On a given day, suppose that:a. VISA (a DJIA component) had a closing stock price of $160.
b)The sum of the closing stock prices of all (thirty) DJIA components was $4,120; and
c)An ETF that tracks the DJIA held 3,000 sharesof VISA (and shares of the other twenty-nine DJIA components). This ETF does nothold other assets (e.g., cash).
On the next day, suppose that:
i. VISA announces a 4:1 stock split; and
ii. The stock prices of the other twenty-nine DJIA components remain unchanged.
Can you find the number of shares of Nike (another DJIA component)that the ETF that tracks the DJIA should holdafterthe stock split of VISA? If your answer isYES, please find the number of shares of Nike. If your answer is NO, please explain why you cannot find the number of shares of Nike.
