Equity Investments Q75

0. Peter gathers the following information for a market-capitalization- weighted index comprised of securities ABC, DEF and GHI:
Security Beginning of Period PriceEnd of Period PriceDividends per shareShare Outstanding
ABC 1,5001,700106,000
DEF  2,5001,500 158,500
GHI  50060010 10,000

  • Option :
  • Explanation : The total return of the market-capitalization-weighted index is calculated below:
    Security  Beginning of PeriodValueEnd of Period ValueTotalDividendTotalReturn %
    ABC   9,000,00010,200,00060,00014
    DEF  21,250,00012,750,000127,500-39.4
    GHI  5,000,0006,000,000100,00022
    Total 35,250,00028,950,000287,500-17.06
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