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Use the following information relating to a market-capitalization-weighted equity index: Security Shares Outstanding Price at the End of 2009 ($) Price at the End of

Use the following information relating to a market-capitalization-weighted equity index:

Security Shares Outstanding Price at the End of 2009 ($) Price at the End of 2010 ($) Dividends per Share ($)
A 4,000 30 36 0.85
B 12,000 25 21 2.15
C 7,000 40 47 1.12

Assume that all dividend payments are made at the end of the year.

Given a divisor of 700, the value of the price return index on December 31, 2010 is closest to:

  1. 1,000
  2. 1,125.21
  3. 1,035.71

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