a. b. C. 31. a. b. c. The weight of Security B in the index on December 31, 2022 with dividends reinvested and before rebalancing is closest to: 16.75% 18.55% 19.24% The total return on the index referenced in the previous question for the year 2022 is closest to: 7.35% 7.87% d. 22.16% e. 23.33% f. 25.00% 8.90% d. 10.53% e. 12.10% f. 12.54%

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Related questions
Question
30.
Questions 30 and 31 are related.
Use the following information regarding an equal-weighted equity index and assume that all dividend
payments are made at the end of the year and are reinvested in the stock that paid the dividend.
Security Price at the End of 2021 Price at the End of 2022 Dividends per Share
A
$26
$0.50
B
$45
$0.20
C
$36
$0.40
Ꭰ
$135
$0.50
Note: The dollar value of the index on December 31, 2021 is $10,000 and using a divisor of 100, the index level
equals 100.
a.
b.
C.
31.
a.
b.
C.
The weight of Security B in the index on December 31, 2022 with dividends reinvested and before rebalancing
is closest to:
16.75%
18.55%
19.24%
$25
$50
$31.25
$100
7.35%
7.87%
The total return on the index referenced in the previous question for the year 2022 is closest to:
8.90%
d. 22.16%
e. 23.33%
f. 25.00%
d. 10.53%
e. 12.10%
f. 12.54%
Transcribed Image Text:30. Questions 30 and 31 are related. Use the following information regarding an equal-weighted equity index and assume that all dividend payments are made at the end of the year and are reinvested in the stock that paid the dividend. Security Price at the End of 2021 Price at the End of 2022 Dividends per Share A $26 $0.50 B $45 $0.20 C $36 $0.40 Ꭰ $135 $0.50 Note: The dollar value of the index on December 31, 2021 is $10,000 and using a divisor of 100, the index level equals 100. a. b. C. 31. a. b. C. The weight of Security B in the index on December 31, 2022 with dividends reinvested and before rebalancing is closest to: 16.75% 18.55% 19.24% $25 $50 $31.25 $100 7.35% 7.87% The total return on the index referenced in the previous question for the year 2022 is closest to: 8.90% d. 22.16% e. 23.33% f. 25.00% d. 10.53% e. 12.10% f. 12.54%
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