Suppose You Invest $20,000 by Purchasing 200 Shares of Abbott

question 28

Multiple Choice

Suppose you invest $20,000 by purchasing 200 shares of Abbott Labs (ABT) at $50 per share, 200 shares of Lowes (LOW) at $30 per share, and 100 shares of Ball Corporation (BLL) at $40 per share. Suppose over the next year Ball has a return of 12.5%, Lowes has a return of 21%, and Abbott Labs has a return of -10%. The return on your portfolio over the year is ________.

• A) 0%
• B) 7.6%
• C) 3.8%
• D) 5.7%

---

Definitions:

Variable Costs

Costs that change in proportion to the level of production or business activity.

Cost Center

A department or unit within an organization to which costs can be allocated, but that does not directly generate revenue.

Performance Evaluation

The systematic process of assessing and reviewing an employee’s job performance and productivity in relation to established criteria and objectives.

Excess Capacity

The situation in which a company can produce more goods or services than currently demanded due to available resources exceeding production requirements.