Suppose You Invest in 200 Shares of Johnson and Johnson

question 52

Multiple Choice

Suppose you invest in 200 shares of Johnson and Johnson at $70 per share and 200 shares of Yahoo at $20 per share.If the price of Johnson and Johnson increases to $80 and the price of Yahoo decreases to $18 per share,what is the return on your portfolio?

• A)12.21%
• B)8.89%
• C)9.76%
• D)11.21%

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Definitions:

Statistical Tool

Software or methods used for the analysis, interpretation, and visualization of statistical data.

Causality

The relationship between cause and effect where one variable causes the change in another.

Multiple Regression

An approach in statistics where multiple predictors are used to estimate the outcome of a target variable.

Path Analysis

A specialized type of structural equation modeling used to describe directed dependencies among a set of variables, suitable for analyzing complex causal relationships.