Question: 37. Use the following information relating to a float-adjusted market-capitalization-weighted equity index Security Shares Outstanding % of Shares in the Market Float Price at the

37. Use the following information relating to a float-adjusted market-capitalization-weighted equity index

Security

Shares Outstanding

% of Shares in the Market Float

Price at the End of 2009 ($)

Price at the End of 2010 ($)

Dividends per Share ($)

A

20,000

41%

42

38

0.85

B

15,000

37%

54

51

2.15

C

20,000

53%

27

35

1.12

Assume that all dividend payments are made at the end of the year.

The weight of Security B in the index on December 31, 2010 is closest to:

a. 29.31%

b. 30.82%

c. 31.05%

d. 32.22%

e. 37.02%

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