An equity market index comprises three stocks: Melbourne Ltd, Sydney Ltd and Brisbane Ltd. Details about these three stocks are provided below:

	Melbourne	Sydney	Brisbane
Price at time t	$9.00	$40.00	$1.00
Number of Shares on Issue (mill)	1000	500	1000
Market Capitalisation ($ mill)	$9,000	$20,000	$1,000
Price at time t+1	$10.00	$39.00	$1.00

Calculate the returns on the index comprising these three stocks across the year to t+1 if the index is equal weighted.

Select one:

a.

2.87%

b.

1.67%

c.

0.00%

d.

2.00%

e.

None of the responses provided are correct.