Wow, I am so confused with this question.
So the return on the stock is not equal to the market cap growth. it says assuming NO STOCK DIVIDENDE and NO STOCK SPLIT which type of index would have performed better.
Well if their is no dividend and no stock split, the only other of mismatch would be stock emission to raise new capital. So considering their is stock emission, my better proxy would be to use the stock price increase ( since no dividend and no stock split ). They use the market cap growth… Im so confuse.
can anyone help?
thanks
P.S : I would be very suprise that a value-weigthed index do not adjust for stock emission.