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NEW QUESTION: 1
A price-weighted index was constructed two months ago using 2 stocks, A and B, then priced at $10 and $17, respectively. The index is adjusted at stock splits so as to not allow splits to affect its value.
Stock B underwent a 3-for-2 split a month ago, when it was trading at $24 and A was trading at $12. Right now, A is trading at $11 and B is trading at $14. The value of the index equals ________.
First note that a price weighted index is derived by summing up the prices of the constituent stocks and then dividing the sum by a divisor. When the index is first constructed with N stocks, the divisor equals N.
Later on, when changes like stock splits or index composition take place, the divisor is adjusted so as to keep the value of the index constant across the change (Dow Jones Industrial Average is adjusted in this fashion, for e.g. and hence, its divisor is no longer 30 but a much lower value, less than
1 ). Just before stock B split, the value of the index was (24+12)/2 = 18. After the split, the price of B changed to 24 / 3 * 2 = 16 per share. Hence, the divisor changes from 2 to (16+12)/18 = 1.556. Therefore, the current index value equals (11+14)/1.556 = 16.07.
NEW QUESTION: 2
Which are two general SDN characteristics? (Choose 2)
A. Southbound interface are interfaces used between the control plane and the data plane.
B. OpenFlow is considered one of the first Northbound APIs used by SDN controllers.
C. Northbound interfaces are open interfaces used between the control plane and the data plane.
D. The separation of the control plane from the data plane.
E. OVSDB is an application database management protocol.