QUESTION 25

The S&P 500 Index represents a portfolio comprised of 500 large publicly traded companies. A year ago the index had a value of $4,677, and today the index has a value of $3,824. If the average dividend paid on stocks is 4% of the value of the index at the start of the year, what is the rate of return on the index?

a. 18.24% gain

b.14.24% gain

c.14.24% loss

d. 18.24% loss