An analyst gathered the following information regarding an equity market index that was created on...
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Accounting
An analyst gathered the following information regarding an equity market index that was created on January 1, 2009 and consists of the following four securities:
| Securities | Price at December 31, 2009 ($) | Price at December 31, 2010 ($) | Dividend Paid ($) | Weight in the Index |
|---|---|---|---|---|
| A | 31 | 35 | 2 | 25% |
| B | 42 | 48 | 1 | 35% |
| C | 27 | 32 | 1 | 20% |
| D | 22 | 24 | 3 | 20% |
Assume that dividends are paid at the end of the year.
The following information is also available:
Price return in 2009 = 10.25%
Total return in 2009 = 15.75%
The price return on Security A in 2010 is closest to:
- 19.35%
- 16.13%
- 12.90%
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