Use the Figure for the Question(s) Below

question 6

Multiple Choice

Use the figure for the question(s) below.
-What is the bid-ask spread on the stock shown above?

• A) 1 cent
• B) 3 cents
• C) 6 cents
• D) 12 cents

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Definitions:

Investment Principal

A sum of money invested initially in a financial instrument or vehicle, which serves as the base on which returns or interest is calculated.

Passive Asset Allocation

An investment strategy that aims to build a portfolio mimicking a market index's composition, requiring minimal buying and selling.

Proportions

The quantitative relationship between two amounts, showing the number of times one value contains or is contained within the other.

Portfolio Management

The act of making investment decisions to meet specified investment goals for the benefit of the investors.