If You Own 1,000 Shares of Alaska Corporation at $19

question 6

Multiple Choice

If you own 1,000 shares of Alaska Corporation at $19.95, 250 shares of Best Company at $17.50, and 250 shares of Motor Company at $2.50, what are the portfolio weights of each stock?

• A) Alaska = 0.1000, Best = 0.2500, Motor = 0.2500
• B) Alaska = 0.4994, Best = 0.4380, Motor = 0.0626
• C) Alaska = 0.7996, Best = 0.1754, Motor = 0.0250
• D) Alaska = 0.1995, Best = 0.1750, Motor = 0.0250

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Definitions:

Significance Level

A threshold in hypothesis testing that determines the probability of rejecting the null hypothesis when it is actually true, usually denoted by alpha (α).

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The various classifications or categories of restaurants based on factors such as cuisine, service method, and pricing.

Ages

The length of time that an individual, entity, or object has existed, typically measured in years.

P-value

The chance of getting test outcomes that are as drastic as or more than the observed results, given that the null hypothesis holds.