Assume the Dow Jones Industrial Average index consisted of two stocks, POS and CLO prior to the end of trading hours yesterday. At the trading close, the ticker CLO is replaced by LOG with stock price $55. Assume the firm (old ticker: CLO, new ticker:LOG) has no change in their fundamental value. Prices are shown in the table below. What is the new divisor ??? Round your answer to three decimal places Please give a detailed explanation using formulas, not excel. A. 1.048 B. 1.078 C. 1.359 D. 0.736 E. 0.927 F. 2.000

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Stock Market Indices

Stock indexes are used to compare the price fluctuations of a group of stocks of similar companies, which are combined based on a similar industry or a particular market capitalization limit or type of market. The price comparison is based on a pre-determined standard method or indicators. These stock indexes are usually considered a base for comparison of a particular stock, and the performance of that particular company can be easily determined.