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%

Given that the index value at inception was 1,000, the values of the total return index at the end of 2009 and 2010 are closest to:

Answer rating: 100% (QA)

To calculate the values of the total return index at the end of 2009 and 2010 we need to consider bo... View the full answer