Ed Lawrence Has $100,000 Invested

question 37

Multiple Choice

Ed Lawrence has $100,000 invested. Of that, $30,000 is invested in Tim Hortons stock, $25,000 is invested in T-bills, and the remainder is invested in corporate bonds. Which of the following is NOT
Correct regarding his portfolio weights? (All values are current market values.)

• A) Ed has 30% of his portfolio invested in stocks.
• B) Ed has 45% of his portfolio invested in corporate bonds.
• C) Ed has 70% of his portfolio invested in assets other than stocks.
• D) Ed has 70% of his portfolio invested in risk-free assets.
• E) If Ed sells his corporate bonds and buys Suncor stock with the proceeds, he will end up with 75% of his portfolio invested in stocks.

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Definitions:

Helper Role

The function or position of providing assistance or support to someone else, often in a professional context such as counseling or healthcare.

Subjective Mechanism

Subjective mechanism refers to processes or methods that are based on personal feelings, tastes, or opinions rather than objective facts or evidence.

Subsequent Actions

Activities, decisions, or measures taken following a particular event or as a continuation of a process already underway.

Projection

A psychological defense mechanism where individuals attribute their own unacceptable thoughts, feelings, or motives to another person.