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Question of the Week - Equity

AdaptPrepAdaptPrep Des Moines, IA, USAPosts: 211 Sr Associate
edited January 2015 in Level 1 Questions
In 2001, a couple of new indices were set up. They were both based on the same pool of securities, and the weightings and selection of securities has remained constant. The divisor was also the same for both indices at inception. The only difference is that one index is a price index and the other is a total return index. Which is likely to have the highest price today?

Question of the Week - Equity 30 votes

Price index
EQ_ArbitrageDrez07 2 votes
Total return index
DonAdaptPrepnitinStuj79RandallK27simply_complex2bhalb691ThomasWthendry7roverfanclubrdxswap272684ryleibelandreacarzanatmcinernysophiamullermarianmihaiarhelpabvanove12nilsenp06 23 votes
Both will have the same price
googs1484JgreigVixen71hamiltonPicknroll 5 votes


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