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C1000-130 - IBM Cloud Pak for Integration V2021.2 Administration

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NEW QUESTION: 1
Assume the following information about an equally-weighted index comprised of 3 stocks, A, B and C
Security | Price (Beginning) | Price (End) | Total Dividends A | 5 | 6 | 1 B | 8| 7 | 0 C | 10 | 15 | 2
The price return of the index is:
A. 32.5%.
B. 18.8%.
C. 19.2%.
Answer: C
Explanation:
The price return of A: (6-5) / 5 = 20%. The price return of B: (7-8) / 8 = -12.5%. The price return of C: (15 - 10)/10 = 50%. Since the index is equally weighted, the price of the index is (1/3) 20% +
(1/3) (-12.5%) + (1/3) 50% = 19.2%.


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