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Consider a stock index consisting of the following three stocks: Stock Price at the beginning of the year Number of shares outstanding Stock: XYZ Price

Consider a stock index consisting of the following three stocks: Stock Price at the beginning of the year Number of shares outstanding

Stock: XYZ Price At Beginning of the Year: $50, $40, $25 Number of Shares Outstanding: 100, 125, 200 Respectively

You dont have end-of-year price information. How does the equal-weighted index return during the year (from start to end) compare to the price-weighted index return? A) The equal-weighted return equals the price-weighted return B) The equal-weighted return is greater than the price-weighted return C) The equal-weighted return is less than the price-weighted return D) Cannot determine without more information

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