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Assume that there are two stocks, DELL and P&G, in an Index. The price of DELL is currently $75 per share, there are 200 shares

Assume that there are two stocks, DELL and P&G, in an Index.

The price of DELL is currently $75 per share, there are 200 shares of DELL stock outstanding, and the return on DELL stock over the next year will be 10%.

The price of P&G is currently $200 per share, there are 75 shares of P&G stock outstanding, and the return on P&G stock over the next year will be 20%.

19) What is the return over the year on a MARKET VALUE-WEIGHTED INDEX?

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