Youwanttotracktheperformanceofequityusinganindexthatha

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Unformatted text preview: turns. How does it relate to the geometric average of annual gross returns? You want to track the performance of Equity using an index that has level set to 100 as of Dec 31 1991. d) Calculate the level of the index with dividends (total return index) for each year. e) Calculate the level of the index without dividends (price index) for each year. f) Use the index level on Dec 31 1994 to compute the three‐year gross return including dividends. 2. You are analyzing monthly log return data on the S&P 500 index. Specifically, you...
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This note was uploaded on 02/08/2014 for the course COMM 374 taught by Professor Lazrak during the Spring '08 term at The University of British Columbia.

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