If You Own 400 Shares of Xerox at $15

question 92

Multiple Choice

If you own 400 shares of Xerox at $15.00, 500 shares of Qwest at $10.00, and 350 shares of Liz Claiborne at $45.00, what are the portfolio weights of each stock?

• A) Weight of Xerox: 22.43%; Weight of Qwest: 11.09%; Weight of Liz Claiborne: 58.88%
• B) Weight of Xerox: 34.67%; Weight of Qwest: 16.69%; Weight of Liz Claiborne: 48.64%
• C) Weight of Xerox: 22.43%; Weight of Qwest: 18.69%; Weight of Liz Claiborne: 58.88%
• D) Weight of Xerox: 36.98%; Weight of Qwest: 61.07%; Weight of Liz Claiborne: 1.95%

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Definitions:

Government Borrowing

The act of governments raising funds through issuing debt securities or borrowing directly from financial institutions to finance government spending.

Private Sector

The private sector encompasses businesses and activities not owned or directly managed by the government, operating primarily through the private enterprise and market system.

Balanced Budget

A financial situation where revenues are equal to expenditures, resulting in no deficit or surplus.

Recession

A significant decline in economic activity spread across the economy, lasting more than a few months, visible in real GDP, real income, employment, industrial production.