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The Day Michael Liquidated His Old Portfolio and Rolled the Cash

question 14

Multiple Choice

The day Michael liquidated his old portfolio and rolled the cash into a new portfolio, he calculated the market capitalization of his former holdings and set that as a baseline equal to 1000. On the day of sale it represented ownership in five companies: 1,500 shares of A selling at $23.50, 1,000 shares of B at $32.00, 6,500 shares of C at $7.29, 200 shares of D at $128.45 and 1,200 shares at $56.78 of E. A year later his old portfolio had an index value of 1102 and Michael's new portfolio was at 872. How much more money would Michael have had if he had kept his old portfolio?


Definitions:

Inadequately Funded

Describing a situation, project, or organization that does not receive sufficient financial resources for optimal operation.

Hirschi

Relates to Travis Hirschi, a prominent criminologist known for his social control theory which argues that strong social bonds inhibit deviant behavior.

Adolescent Siblings

Brothers and sisters in their teenage years, a period marked by significant growth, change, and development.

Deviance

Behaviors or actions that violate societal norms or expectations.

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