Markets: A Rigorous Course

M01 · Problem 15 ★★ Check

Total return index

An index starts the year at 25,000. It rises to 25,500, then on the ex-date of a large dividend (index dividend 325 points) closes at 25,200, and ends the year at 26,000. Compute the price-index return and the total-return-index return for the year using (1.9). Decompose the difference.

Answers

Commas, ₹, % and 1e-3 notation are accepted.

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