If You Own 400 Shares of Xerox at $15

question 72

Multiple Choice

If you own 400 shares of Xerox at $15.00, 500 shares of Qwest at $10.00, and 350 shares of Liz Claiborne at $45.00, what are the portfolio weights of each stock?

• A) weight of Xerox: 22.43 percent, weight of Qwest: 11.09 percent, weight of Liz Claiborne: 58.88 percent
• B) weight of Xerox: 34.67 percent, weight of Qwest: 16.69 percent, weight of Liz Claiborne: 48.64 percent
• C) weight of Xerox: 22.43 percent, weight of Qwest: 18.69 percent, weight of Liz Claiborne: 58.88 percent
• D) weight of Xerox: 36.98 percent, weight of Qwest: 61.07 percent, weight of Liz Claiborne: 1.95 percent

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Definitions:

Multiple-Step Income Statement

A form of income statement that contains several sections, subsections, and subtotals.

Earnings Per Share

A financial metric indicating the portion of a company's profit allocated to each outstanding share of common stock.

Price-Earnings Ratio

A financial ratio that measures a company's current share price relative to its per-share earnings, used to evaluate the relative value of a company's shares in the market.

Partial Income Statement

An income statement that reports revenue, expenses, and net income over a specified period of time but does not include all of the details found in a comprehensive income statement.