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An analyst gathers the following information and constructs indices of five stocks in three weighting methods. Security Beginning Price Ending Price Dividends per Share Shares
An analyst gathers the following information and constructs indices of five stocks in three weighting methods. Security Beginning Price Ending Price Dividends per Share Shares Outstanding P 20 27 Q40 28 R30 26 S25 29 T 35 30 1.0 50,000 2.0 75,000 1.0 100,000 2.0 80,000 1.5 60,000 Which of the following is correct? A. The equal-weighted total return is higher than the value-weighted total return. B. The price-weighted total return is higher than the equal-weighted total return. C. The value-weighted total return is higher than the price-weighted total return
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