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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:
- 1,000
- 1,125.21
- 1,035.71
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