At the Beginning of the Month, You Owned $15,500 of General

question 101

Multiple Choice

At the beginning of the month, you owned $15,500 of General Motors, $4,500 of Starbucks, and $9,000 of Nike. The monthly returns for General Motors, Starbucks, and Nike were 7.10 percent, −1.36 percent, and −0.54 percent. What is your portfolio return?

• A) −1.12 percent
• B) 1.17 percent
• C) 2.54 percent
• D) 3.42 percent

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Definitions:

Financial Statements

Official records that outline a company's financial activities and conditions, including the balance sheet, income statement, and cash flow statement.

Firm's Financial Position

The status of a company's assets, liabilities, and equity at a given point in time, as reflected in its financial statements.

Market/Book Ratio

Also known as the price-to-book ratio, it compares a company's market value with its book value, indicating how much investors are paying for each dollar of net assets.

Stock Price

Stock price is the current market price of a share of stock, reflecting the value the market places on a company.