You Have 5 Stocks in Your Investment Portfolio

question 51

Multiple Choice

You have 5 stocks in your investment portfolio.You want to keep track of your portfolio's performance over the last 2 years.You have data on each of the stock's average price and the number of shares of each stock for every day of the last 2 years.Which of the following would be the most appropriate analysis to perform?

• A)Simple price index
• B)Laspeyres price index
• C)Unweighted price index
• D)Unweighted aggregate price index.

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Definitions:

Economically Equivalent

Refers to different financial transactions or investments that have the same economic effect or value, despite differing in structure or form.

Scheduled Payment

A pre-determined amount of money that is paid at regular intervals under the terms of a loan or lease agreement.

Compounded Semi-Annually

Interest on a loan or investment calculated twice a year, adding each interest payment to the principal.

Bond Interest

The interest received by a bondholder, typically paid semi-annually, on the bond's face value.