Explanation:

The price return of a price-weighted index is calculated as:

\text{Price Return} = \left( \frac{\sum P_{\text{end}}}{\sum P_{\text{begin}}}} - 1 \right) \times 100

Where:

• $\sum P_{\text{end}}$ is the sum of the end-of-period prices.
• $\sum P_{\text{begin}}$ is the sum of the beginning-of-period prices.

For the given data:

$$\sum P_{\text{end}} = 20.00 + 13.50 + 14.00 = 47.50$$ $$\sum P_{\text{begin}} = 25.00 + 10.00 + 10.00 = 45.00$$ $$\text{Price Return} = \left( \frac{47.50}{45.00} - 1 \right) \times 100 = 5.56\% \approx 5.6\%$$

Option A is correct because it represents the price return of the index. Option B incorrectly represents the total return, and Option C incorrectly represents the price return for a market-capitalization weighted index.