When Computing the Expected Return on a Portfolio of Stocks

question 415

Multiple Choice

When computing the expected return on a portfolio of stocks the portfolio weights are based on the:

• A) Number of shares owned in each stock.
• B) Price per share of each stock.
• C) Market value of the total shares held in each stock.
• D) Original amount invested in each stock.
• E) Cost per share of each stock held.

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Definitions:

Aerobic Respiration

Breakdown of glucose in the presence of oxygen to produce carbon dioxide, water, and approximately 38 ATPs; includes glycolysis, the citric acid cycle, and the electron-transport chain.

ATP

Adenosine triphosphate, a molecule that carries energy within cells for metabolism.

Nutrient Molecules

Essential compounds absorbed by the body to provide energy, support growth, and maintain and repair body tissues.

Energy Production

The biological processes by which cells convert nutrients into usable energy, primarily through respiration and metabolism.