Float-adjusted market-capitalization-weighted equity index

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.