Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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:
- 7.08%
- 7.80%
- 6.57%
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started