A Portfolio Consists of the Following Securities

question 42

Multiple Choice

A portfolio consists of the following securities.What is the portfolio weight of stock X?

• A).183
• B).202
• C).219
• D).246
• E).285

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Definitions:

Multiplier Value

A factor that quantifies the impact of a change in some economic activity on the rest of the economy.

MPC (Marginal Propensity to Consume)

A measure of the change in consumption resulting from a change in income; specifically, the proportion of additional income that is spent on consumption.

Multiplier

A factor by which an initial change in spending will alter total economic output by a greater amount.

Multiplier Effect

The proportionate increase in final income that results from an injection of spending (initial increase in spending), typically influencing the level of national income and output.