After Taking a Reading-Week Trip to the Dominican Republic,you Are

question 44

Multiple Choice

After taking a reading-week trip to the Dominican Republic,you are now hooked on Cuban cigars.You decide to build a stock portfolio with two different cigar companies:
Altadis'Behike(Altadis)
Gurkha'sHis Majesty's Reserve (Gurkhas)
You purchase 1,000 Altadis' shares,each at a price of $45.You also purchase 1,200 Gurkha's shares,each at a price of $65.Calculate Altadis' portfolio weight.

• A) 0.316
• B) 0.366
• C) 0.386
• D) 0.416
• E) 0.426

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Definitions:

Indirect Expenses

Costs that are not directly traceable to a specific cost object, such as the production of goods or services.

Decentralization

The distribution of decision-making power away from a central authority within an organization to lower levels or divisions.

Controllable Costs

Expenses that management can directly or indirectly control or influence in the short term, such as supplies and advertising.

Direct Expense

Costs that can be directly traced to a specific product, service, or department.