Suppose You Invest in 100 Shares of NAB at $40

question 42

Multiple Choice

Suppose you invest in 100 shares of NAB at $40 per share and 100 shares of WES at $25 per share. If the price of NAB increases to $45 and the price of WES decreases to $22 per share, what is the return on your portfolio?

• A)4.12%
• B)5.39%
• C)3.08%
• D)9.45%

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Definitions:

Economic Costs

Economic costs include both the explicit costs of production, such as raw materials and wages, and implicit costs, such as opportunity costs.

Explicit Costs

Direct, out-of-pocket payments for resources employed in the production of goods or services.

Implicit Costs

The opportunity costs of using resources owned by the firm for its own operations, without direct payment but with foregone opportunities.

Explicit Costs

Direct, out-of-pocket payments for wages, rent, and materials, among others, involved in the production of goods or services.