Why might a Registered Representative prefer to use a "Total Return Index" rather than a standard price index when measuring long-term portfolio performance for a client?

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Accepted Answer

Total return indices provide a more accurate measure of an investor's actual experience because they account for the compounding effect of dividend reinvestment.

Why might a Registered Representative prefer to use a "Total Return Index" rather than a standard price index when measuring long-term portfolio performance for a client?

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