If You Own 1,000 Shares of Alaska Corporation at $19

question 6

Multiple Choice

If you own 1,000 shares of Alaska Corporation at $19.95, 250 shares of Best Company at $17.50, and 250 shares of Motor Company at $2.50, what are the portfolio weights of each stock?

• A) Alaska = 0.1000, Best = 0.2500, Motor = 0.2500
• B) Alaska = 0.4994, Best = 0.4380, Motor = 0.0626
• C) Alaska = 0.7996, Best = 0.1754, Motor = 0.0250
• D) Alaska = 0.1995, Best = 0.1750, Motor = 0.0250

---

Definitions:

Algorithms

A set of rules or procedures for solving a problem in a finite number of steps, often used in computing and mathematical calculations.

Heuristics

Simple, efficient rules or strategies, often subconscious, used to make decisions and solve problems quickly, but not always accurately.

Availability Heuristic

An intellectual quick route based on the readily accessible examples in a person's thoughts during the appraisal of a specific subject, idea, technique, or judgment.

Lottery Tickets

Pre-purchased tickets for a lottery, a form of gambling where winners are selected by drawing of lots from among those who have paid money to participate.