Loredana Has Invested Equal Amounts in Each of the Shares $\$ 11.55$

question 19

Multiple Choice

Loredana has invested equal amounts in each of the shares of company A,company B and company C,which she purchased one year ago at prices of $10,$2 and $1,respectively.Loredana has recently sold her shares in company B for $2.50 and in company C for $1.15.If Loredana wishes to earn a continuously compounded return of 20% for the year,on her equally weighted portfolio,at what price will she need to sell her shares in company A?

• A) \(\$ 11.55\)
• B) \(\$ 12.26\)
• C) \(\$ 12.67\)
• D)\(\$ 13.34\)

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Definitions:

Fluid Intelligence

Intellectual ability that reflects basic information processing skills, including working memory, processing speed, and the ability to detect relations among stimuli and draw inferences; underlies learning, is not influenced by culture, and reflects brain functioning.

Pragmatic Intelligence

The ability to solve real-world problems by adapting to, shaping, or selecting environments.

Crystallized Intelligence

The ability to use skills, knowledge, and experience gained over time, often improving as one gets older.

Fluid Intelligence

The ability to think abstractly, reason quickly, and solve problems in novel situations, independent of acquired knowledge.