A market index contains the following two securities:
| Stock | Shares in Index | Start-of-Period Price($) |
End-of-Period Price($) |
Dividend per Share($) |
| A | 600 | 40 | 37 | 2.00 |
| B | 500 | 50 | 52 | 1.50 |
The total return on an equal-weighted basis is closestto:
| Stock | Shares in Index | Start-of-Period Price($) |
End-of-Period Price($) |
Dividend per Share($) |
Price Return(%) | Total Return(%) |
| (1) | (2) | (3) | (4) | =(3)/(2)-1 | =[(3)+(4)]/(2)-1 | |
| A | 600 | 40 | 37 | 2 | -7.50% | -2.50% |
| B | 500 | 50 | 52 | 1.5 | 4.00% | 7.00% |
| Total Return=[(-2.5+7)/2] | 2.25% | |||||