Answer: 21.1%

## Explanation For an equal-weighted index, each security has the same weight in the index. To calculate the price return of an equal-weighted index: 1. **Calculate the individual security returns:** - Security 1: Return = ($6 - $5) / $5 = $1 / $5 = 0.20 or 20% - Security 2: Return = ($2 - $2) / $2 = $0 / $2 = 0.00 or 0% - Security 3: Return = ($4 - $3) / $3 = $1 / $3 = 0.3333 or 33.33% 2. **Calculate the equal-weighted average return:** Since it's an equal-weighted index with 3 securities, each security gets 1/3 weight. Index return = (20% + 0% + 33.33%) / 3 Index return = (53.33%) / 3 Index return = 17.78% 3. **Check the options:** - 17.8% matches our calculation of 17.78% - 20.0% would be incorrect - 21.1% would be incorrect **Important Note:** The shares outstanding information is irrelevant for calculating price return of an equal-weighted index. Price return only considers price changes, not changes in shares outstanding or market capitalization. **Calculation verification:** - (0.20 + 0 + 0.3333) / 3 = 0.5333 / 3 = 0.1778 = 17.78% Therefore, the price return of the index is closest to **17.8%**, which corresponds to option **A**.

Author: LeetQuiz .