Portfolio Weights If You Own 100 Shares of Air Line

question 102

Multiple Choice

Portfolio Weights If you own 100 shares of Air Line Inc. at $42.50, 250 shares of BuyRite at $53.25, and 350 shares of Motor City at $7.75, what are the portfolio weights of each stock?

• A) Air Line = .3333, BuyRite = .3333, MotorCity = .3333
• B) Air Line = .10, BuyRite = .25, MotorCity = .35
• C) Air Line = .2096, BuyRite = .6566, MotorCity = .1338
• D) Air Line = .1429, BuyRite = .3571, MotorCity = .5000

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Definitions:

Preferred Stock

A class of ownership in a corporation that has a higher claim on assets and earnings than common stock, often receiving dividends before common shareholders and having priority in case of liquidation.

Forecasting

The process of making predictions based on past and present data trends, commonly used in finance to estimate future market movements or economic conditions.

Stock Market Values

The overall value of shares traded within a stock market, representing the market's perception of the total worth of its listed companies.

Uncertainty

The degree to which the outcome of an event, choice, or investment is unknown.