Follow Us :

Equity Investments Q71

0. Index P is a price return index. Index T is a total return index. Both have a starting value of 1000. Both have the same underlying securities and weighting system. Six months after inception the two index values will most likely be equal if:

  • Option : C
  • Explanation : Income generated over time by underlying securities in terms of dividend or interest creates a difference between a price return index and a total return index consisting of identical securities and weights. If the securities in the index do not generate income, both indices will be identical in value.
Cancel reply

Your email address will not be published. Required fields are marked *


Cancel reply

Your email address will not be published. Required fields are marked *