# 1.6.8 Price return

Price return, capital growth, or indirect return, measures the change in an asset's value over a period of time relative to the initial value. The index-level price return 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.*

This is an input to the computation of the price and cash returns contribution.