An analyst gathered the following information regarding an equity market index that was created on...
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Accounting
An analyst gathered the following information regarding an equity market index that was created on January 1, 2009 and consists of the following four securities:
Securities
Price at December 31, 2009 ($)
Price at December 31, 2010 ($)
Dividend Paid ($)
Weight in the Index
A
31
35
2
25%
B
42
48
1
35%
C
27
32
1
20%
D
22
24
3
20%
Assume that dividends are paid at the end of the year.
The following information is also available:
Price return in 2009 = 10.25%
Total return in 2009 = 15.75%
The price return on Security A in 2010 is closest to:
19.35%
16.13%
12.90%
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