To Determine the Weighted Average Returns of Stocks Held in a Portfolio,the

question 6

Multiple Choice

To determine the weighted average returns of stocks held in a portfolio,the weights are determined as the fraction

• A) of the total portfolio value of each stock at the midpoint of the holding period.
• B) of the total portfolio value of each stock at the end of the holding period.
• C) of the total portfolio average value of each stock during the holding period.
• D) of the total portfolio invested in each stock at the beginning of the holding period.

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Definitions:

Liabilities

Financial obligations or debts that a company or an individual owes to others.

Asset

An asset is a resource with economic value that an individual, corporation, or country owns or controls with the expectation that it will provide future benefit.

Owner's Equity

The residual interest in the assets of an entity after deducting liabilities, representing the ownership stake of the business owners.

Income Statement

A financial statement that shows a company's revenues and expenses over a specified period, leading to its net profit or loss.