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# Capital Growth

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Capital growth, or indirect return, measures the change in asset's value over a period of time relative to the initial value. The index-level capital growth is calculated as the weighted average using the market value of each constituent.

where:

$//$ and  $//$ denote constituent i's fair value estimates at times t and t-1 respectively.
$//$ denotes the weight of constituent i at time t-1.

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