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You are given the following total market values for an index over a five-year period. Assuming the index starts at 1,000, cal

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Answer #1

Year 1 index value = 1000

Initial Index value = 1000

Index divisor = 4587/1000 = 4.587

Year 2 Index value = Market value/ Divisor = 4665/4.587 = 1017.00

Year 3 Index value = 5026/4.587 = 1095.71

Year 4 Index value = 4814/4.587 = 1049.49

Year 5 Index value = 5363/4.587 = 1169.17

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