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标题: [求助] CFA L1 Equity 问题请教 [打印本页]

作者: Jalapeno4u 时间: 2008-6-2 05:49
标题: [求助] CFA L1 Equity 问题请教

Schweser June 08 Exam 1 Morning

86. M. Gomez has purchased 100 shares of each of the stocks in the Dow Jones Industrial Average, a price-weighted index, and intends to reinvest cash dividends in additional shares. Assuming there are no stock splits, stock dividends, or changes in the make-up of the index, how will Gomez's portfolio return based on its initial value compare to that of the DJIA? His portfolio:

A. will have higher returns than the DJIA.

B. will return less than the DJIA because of commissions on reinvested dividends.

C. performance relative to the DJIA will depend on how low-price stocks perform relative to high-price stocks.

D. may do better or worse than the DJIA depending on whether the overall market goes up or down.

Why is the answer A?

I understand that DJIA has downside bias due to stock split, but there are no stock splits here.

Also does it mean that Gomez bought the 30 stocks that consititute the index?

作者: Emily915 时间: 2008-6-2 09:51
because he intends to reinvest cash dividends back to additional share, DJIA does not count the reinvest cash dividends, so his return is higher the DJIA

作者: yankee_sailor 时间: 2008-6-4 04:38
Dividend reinvested

作者: Jalapeno4u 时间: 2008-6-4 07:10
Thank you, yankee_sailor and Emily 915!

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