Table 8.2 You Are Going to Invest $20,000 in a Portfolio Consisting

question 134

Multiple Choice

Table 8.2
You are going to invest $20,000 in a portfolio consisting of assets X, Y, and Z, as follows:
-Nico owns 100 shares of stock X which has a price of $12 per share and 200 shares of stock Y which has a price of $3 per share. What is the proportion of Nico's portfolio invested in stock X?

• A) 77%
• B) 67%
• C) 50%
• D) 33%

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Definitions:

Sunk Costs

Outlays already made that cannot be refunded or retrieved.

Project Value

The total worth of a project, calculated by evaluating all incoming and outgoing cash flows to determine its overall financial benefit.

Cost Reduction

Refers to strategies and actions a company undertakes to decrease its total expenses and improve profitability.