Suppose Price Increases from $7

question 123

Multiple Choice

Suppose price increases from $7.00 to $13.00.Using the mid-point formula,the percentage change in price is:

• A) .0.6 = 60 percent.
• B) 0.6 = 60 percent.
• C) 70 percent.
• D) 130 percent.

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Definitions:

Overweighting

Refers to the practice of allocating a larger percentage of a portfolio to a particular asset or sector than the benchmark or average portfolio.

Recent Performance

Refers to the latest outcomes or results of an investment's or financial instrument's activity over a short-term period.

Conventional Finance Theory

A framework in economics that explains the behavior of financial markets, including the dynamics of assets and securities pricing, investment portfolios, and market mechanisms.

Behavioral Finance

An area of study focusing on how psychological influences and biases affect the financial behaviors of investors and financial markets.