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36. Use the following information regarding an equal-weighted equity index and assume that all dividend payments are made at the end of the year. Security
36. Use the following information regarding an equal-weighted equity index and assume that all dividend payments are made at the end of the year.
Security | Price at the End of 2018 | Price at the End of 2019 | Dividends per Share |
A | $20 | $25 | $0.50 |
B | $50 | $45 | $0.20 |
C | $31.25 | $36 | $0.40 |
D | $100 | $135 | $0.50 |
Note: The dollar value of the index on December 31, 2018 is $10,000 and using a divisor of 10, the index level equals 1,000.
The weight of Security B in the index on December 31, 2019 before rebalancing is closest to:
a. 18.55%
b. 25.00%
c. 19.35%
d. 22.15%
e. 16.75%
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