单选题

An investor gathers the following information for an index:

Value of the index as of December 31, 2012	1,000
Interest income over the year 2012	23.50
Dividend income over the year 2012	21.50
Total return of the index over the year 2012	-4.50%

The value of the index as of January 1, 2012 is closest to:

A、 1,047.
B、 1,070.
C、 1,094.

【正确答案】 C

【答案解析】

C is correct. The total return of an index is the price appreciation, or change in the value of the price return index, plus income (dividends and/or interest) over the period, expressed as a percentage of the beginning value of the price return index.
TR_I = (V_PRI1 − V_PRI0 + Inc_I) ÷ V_PRI0
where
TR_I = the total return of the index portfolio (as a decimal number)
V_PRI1 = the value of the price return index at the end of the period
V_PRI0 = the value of the price return index at the beginning of the period
Inc_I = the total income (dividends and/or interest) from all securities in the index held over the period
-4.5% = (1000 - VPRI0 + 23.5 + 21.5) ÷ V_PRI0;
V_PRI0 = 1000 + 23.5 + 21.5 ÷ (1 - 4.5%) = 1,094.