Equity Investments Q74
74An analyst gathers the following data for a price-weighted index:
| Beginning of period | End of period | |||
| Security | Price | $ Shares | Price$ | Shares |
| A | 10 | 100 | 15 | 100 |
| B | 40 | 150 | 38 | 150 |
| B | 40 | 150 | 38 | 150 |
The price return of the index over the period is closest to:
- Option : A
- Explanation : The sum of prices at the beginning of the period is 66; the sum at the end of the period is 73. Regardless of the divisor, the price return is 73 − 1 = 0.1061 or $10.61%.
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