Explanation:
At inception, the values of the price return and total return versions of an index are equal. However, as time passes, the total return index includes reinvested dividends or interest, causing its value to exceed that of the price return index. Therefore, the correct answer is A, as the price return version will be less than the total return version over time.
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As time progresses after inception, the value of the price return version of an index will be:
A
less than the value of the total return version.
B
equal to the value of the total return version.
C
greater than the value of the total return version.