At the Beginning of the Month, You Owned $8,000 of Company

question 67

Multiple Choice

At the beginning of the month, you owned $8,000 of Company G, $8,000 of Company S, and $3,000 of Company N. The monthly returns for Company G, Company S, and Company N were 7.80 percent, 1.50 percent, and −0.75 percent. What is your portfolio return?

• A) 2.85 percent
• B) 3.80 percent
• C) 4.03 percent
• D) 8.55 percent

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Definitions:

Unemployment Rate

The percentage of the labor force that is jobless and actively seeking employment, serving as a key indicator of labor market health.

Inflation

The rate at which the general level of prices for goods and services is rising, eroding purchasing power over time.

Budget Deficit

The financial situation where a government's expenditures exceed its revenues within a specified period.

Flow Variable

A quantity measured over a specified period of time, indicating the rate of change in a variable.