An Index Consists of the Following Securities and Has an Index

question 99

Multiple Choice

An index consists of the following securities and has an index divisor of 3.0.What is the price-weighted index return?

• A) 9.43 percent
• B) 9.67 percent
• C) 10.53 percent
• D) 10.91 percent
• E) 11.11 percent

---

Definitions:

Salvage Value

The estimated residual value of an asset at the end of its useful life, reflecting what it can be sold for or its scrap value.

Straight-Line Method

A depreciation method where an equal amount of depreciation is charged for each year of the asset's useful life.

Annual Depreciation

The amount of expense allocated during a year to account for the reduction in value of a fixed asset over its useful life.

Salvage Value

The presumed end value of an asset following the completion of its useful life.