When Computing the Expected Return on a Portfolio of Shares

question 70

Multiple Choice

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

• A)number of shares owned in each equity.
• B)share price.
• C)market value of the total shares held in each equity.
• D)original amount invested in each equity.
• E)cost per share of each equity held.

---

Definitions:

Household Income

Represents the total gross income of all members of a household, encompassing all sources of income including salaries, bonuses, dividends, and any other income streams before taxes.

Federal Poverty Level

A measure of income issued annually by the Department of Health and Human Services used to determine eligibility for various federal and state assistance programs.

EIC

The Earned Income Credit (EIC) is a tax credit for low-to-moderate-income working individuals and families, particularly those with children.

Qualifying Child

A dependent who meets specific IRS criteria, making the taxpayer eligible for certain tax benefits.