Equity Investments Q72

0. An analyst gathers the following information for KSE3 index comprised of HBL, FFCL and EFOODS. This is a price-weighted index.
Security Beginning of periodprice (Rs.) End of period price(Rs.) Total Dividend (Rs.)
HBL 148 153 8
FFCL 104 110 5
EFOODS 110 90 4

The price return of the index is closest to:

Answer
Comment
Array

Option :
Explanation : The price return of the price-weighted index is the percentage change in price of the index: (353-362) / 362 = - 2.49%.
Security price Beginning of period End of period price
HBL 148 153
FFCL 104 110
EFOODS 110 90
TOTAL 362 353

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