The Price at the Start of the Period for Asset $-5.8 \%$

question 35

Multiple Choice

The price at the start of the period for asset A is $5 and for asset B is $6.At the end of the period,asset A has fallen to $4 and asset B has risen to $6.50.Calculate the continuously compounded return on a price-weighted portfolio consisting of shares A and B.

• A) \(-5.8 \%\)
• B) \(-4.9 \%\)
• C) \(-2.5 \%\)
• D)\(2.5\%\)

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Definitions:

Separated

Describes a state where two or more entities are physically or symbolically disjoined or kept apart.

Formal Operational

The stage in Piaget's theory of cognitive development where individuals gain the ability to think abstractly, logically, and systematically.

Concrete Operational

A stage in Piaget's theory of cognitive development during which children gain the ability to think logically about concrete events.

Preoperational

A stage in Piaget’s cognitive developmental theory during which children from ages 2 to 7 engage in symbolic play and struggle with taking the perspective of others.