A Stock Market Comprises 2100 Shares of Stock a and 2100

question 78

Multiple Choice

A stock market comprises 2100 shares of stock A and 2100 shares of stock B. The share prices for stocks A and B are $25 and $15, respectively. What proportion of the market portfolio is comprised of each stock?

• A) Stock A is 62.5% and Stock B is 37.5%.
• B) Stock A is 37.5% and Stock B is 62.5%.
• C) Stock A is 50% and Stock B is 50%.
• D) Stock A is 200% and Stock B is 100%.

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Definitions:

Plant/Equipment Investment

Capital expenditure on the physical assets of a company to increase its capacity or improve its efficiency.

Long-Term Forecasts

Predictions about future events or trends in an industry or organization that extend beyond the immediate future, typically several years ahead.

Standard Deviation

An indicator of the extent of differences or spread among a collection of numbers.

Posterior Communicating Arteries

Arteries that connect the posterior cerebral arteries with the internal carotid arteries and are part of the circle of Willis in the brain.