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Use the following information relating to a price-weighted equity index Security Shares in Index Price at the End of 2009 ($) Price at the End

Use the following information relating to a price-weighted equity index

Security Shares in Index Price at the End of 2009 ($) Price at the End of 2010 ($) Dividends per Share ($)
A 2 46 53 0.2
B 2 55 51 0.4
C 2 36 42 0.1

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

The price return on the index is closest to:

  1. 7.08%
  2. 7.80%
  3. 6.57%

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