Question: Compare the two returns and explain their differences. Explain how you would interpret each measure. Return on a Price-weighted index = (55.44-56.11)/ 56.11 = -0.0119

Compare the two returns and explain their differences. Explain how you would interpret each measure.

Return on a Price-weighted index

= (55.44-56.11)/ 56.11

= -0.0119 OR -1.19%

THE MONTHLY RETURN ON A VALUE-WEIGHTED INDEX =

(257,365,300 289,219,200)/289,219,200 = -0.1101 OR -11.01%

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