Hi there,
question about CFA Mock Morning Q# 82.
“Assuming the beginning value of the float-adjusted market-capitalization-weighted equity index is 100, the ending value is closest to:”
They are asking about the value of the float-adjusted market-capitalization-weighted equity index.
I included the dividends here. Apparently this is not correct.
Do we always exclude the dividends doing this calculation? I don’t read anything abou a Price or Total return here…
Thanks in advance!
market cap is only the market cap. you do not need anything else. so if a market cap is 100 Mill, float value = 0.65 -> for the purposes of the calculation -> you would use 65 mill.
Bump. Can someone clarify this? I saw some exercises where they ask “Price return” with market-cap weighting. But if the exercise as OP comments says “float-adjusted with market-cap”, do we always need to ignore dividends?
In the question it doesn’t really specify whether it’s price return or total return.