An Index Consists of the Following Securities and Has an Index

question 23

Multiple Choice

An index consists of the following securities and has an index divisor of 2.0.What is the price-weighted index return?

• A) −1.69 percent
• B) −0.78 percent
• C) 0.00 percent
• D) 0.92 percent
• E) 1.43 percent

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Definitions:

Stated Rate

The interest rate declared on a financial instrument, such as a bond or a loan, which is fixed and does not change over the life of the instrument.

Term

In finance, it refers to the period of time until a loan matures; in a broader sense, it can describe any specific duration or the definition of a concept or agreement.

Receivable

Money owed to a company by its customers or clients for goods or services delivered or used but not yet paid for.

Direct Write-Off Method

An accounting method where uncollectable accounts receivable are directly written off against income at the time they are deemed irrecoverable.