Question: Use the following information regarding an equal-weighted equity index Security Price at the End of 2009 ($) Price at the End of 2010 ($) Dividends

Use the following information regarding an equal-weighted equity index

Security Price at the End of 2009 ($) Price at the End of 2010 ($) Dividends per Share ($)
A 20 25 0.5
B 50 45 0.2
C 31.25 36 0.4
D 100 135 0.5

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

The number of shares for each security during 2010 was:

  1. A - 125
  2. B - 50
  3. C - 80
  4. D - 25

Note: The dollar value of the index on December 31, 2009 is $10,000 and using a divisor of 10, the index level equals 1,000.

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

  1. 18.55%
  2. 25 %
  3. 19.35%

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