. Use the following information regarding an equal-weighted equity index and assume that all dividend payments are made at the end of the year. Security Price at the End of 2020 Price at the End of 2021 Dividends per Share A $20 $25 $0.50 B $50 $45 $0.20 C $31.25 $36 $0.40 D $100 $135 $0.50 Note: The dollar value of the index on December 31, 2020 is $10,000 and using a divisor of 10, the index level equals 1,000.   The weight of Security B in the index on December 31, 2021

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45. Use the following information regarding an equal-weighted equity index and assume that all dividend payments are made at the end of the year.

Security

Price at the End of 2020

Price at the End of 2021

Dividends per Share

A

$20

$25

$0.50

B

$50

$45

$0.20

C

$31.25

$36

$0.40

D

$100

$135

$0.50

Note: The dollar value of the index on December 31, 2020 is $10,000 and using a divisor of 10, the index level equals 1,000.

 

The weight of Security B in the index on December 31, 2021 before rebalancing is closest to:

 

a. 18.55%

b. 25.00%

c. 19.35%

d. 22.15%

e. 16.75%

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