Your Portfolio Manager Has Suggested Two High-Yielding Stocks: the Altria

question 23

Multiple Choice

Your portfolio manager has suggested two high-yielding stocks: The Altria Group (MO) and Reynolds America (RAI) . MO shares cost $50, yield 4.5% in dividends, and have a risk index of 2.0 per share. RAI shares cost $55, yield 5% in dividends, and have a risk index of 3.0 per share. You have up to $7,200 to invest and would like to earn at least $335 in dividends. How many shares (to the nearest whole number) of each stock should you purchase to meet your requirements and minimize the total risk index for your portfolio What is the minimum total risk index ?

• A)buy 350 shares of MO and 40 shares of RAI for a minimum total risk index of 620
• B) buy 190 shares of MO and 70 shares of RAI for a minimum total risk index of 310
• C) buy 100 shares of MO and 40 shares of RAI for a minimum total risk index of 320
• D) buy 260 shares of MO and 60 shares of RAI for a minimum total risk index of 600
• E) no solution

Understand and articulate the diagnostic classification systems used in psychology.

Understand the concepts of replication in research and differentiate between direct and conceptual replication.

Comprehend and identify the components of an experimental design, including independent and dependent variables, and the significance of interactions.

Grasp the ethical considerations necessary in conducting research with human subjects.

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Definitions:

Utility Function

An equation that quantifies the satisfaction or utility that a consumer derives from consuming a set of goods and services, enabling analysis of consumer choices.

Consumption

The employment of products and services by individual consumers or households.

Utility Function

A mathematical representation expressing a consumer's preference ranking system for different bundles of goods, measuring satisfaction derived from consumption.

Consumptions

The use of goods and services by households or an economy, including the process by which commodities are utilized to satisfy needs or desires.