An Investor Owns $8,000 of Adobe Systems Stock, $5,000 of Dow

question 38

Multiple Choice

An investor owns $8,000 of Adobe Systems stock, $5,000 of Dow Chemical, and $3,000 of Office Depot. What are the portfolio weights of each stock?

• A) Adobe: 0.5, Dow Chemical: 0.31, Office Depot: 0.19
• B) Adobe: 0.5, Dow Chemical: 0.32, Office Depot: 0.18
• C) Adobe: 0.5, Dow Chemical: 0.13, Office Depot: 0.27
• D) Adobe: 0.5, Dow Chemical: 0.19, Office Depot: 0.31

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Definitions:

Revised Act

An updated or amended version of a legislative act, incorporating changes made since its original enactment.

Promissory Note

A written, legally binding document in which one party promises to pay a specified sum of money to another party under agreed terms.

Takeover Bid

An offer made to acquire some or all of shareholders' shares in a corporation with the aim of gaining control of the company.

Cumulative Dividend

A feature of preferred stock that entitles shareholders to receive dividends that were omitted in the past.