You Own a Portfolio of 5 Stocks and Have 3

question 71

Multiple Choice

You own a portfolio of 5 stocks and have 3 expected states of the economy. You have twice as much invested in Stock A as you do in Stock E. How will the weights be determined when you compute the rate of return for each economic state?

• A)The weights will be the probability of occurrence for each economic state.
• B)Each stock will have a weight of 20% for a total of 100%.
• C)The weights will decline steadily from Stock A to Stock E.
• D)The weights will be based on the amount invested in each stock as a percentage of the total amount invested.
• E)The weights will be based on a combination of the dollar amounts invested as well as the economic probabilities.

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Definitions:

Social Roles

Represent the expectations and behaviors that society associates with individuals in specific positions or situations.

Historical Periods

Divisions of history into distinct and identifiable periods, often classified by significant events, developments, or characteristics.

Gender Typing

The method through which a child recognizes their own gender identity, leading them to emulate the behaviors, values, and characteristics typical of the gender group they align with.

Secondary Sex Characteristics

Traits that emerge during puberty, not directly related to reproduction, but distinguish between the sexes, such as breast development and facial hair.