USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

question 8

Multiple Choice

USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)
Assume that you hold a two-stock portfolio. You are provided with the following information on your holdings:

-Refer to Exhibit 1.6. Calculate the market weights for stock 1 and 2 based on period t values.

• A) 39%for stock 1 and 61% for stock 2
• B) 50% for stock 1 and 50% for stock 2
• C) 71% for stock 1 and 29% for stock 2
• D) 29% for stock 1 and 71% for stock 2
• E) 30% for stock 1 and 82% for stock 2

---

Definitions:

Bronchioles

Small air passages within the lungs that branch from the larger bronchi and connect to the alveoli, involved in the process of air conduction and gas exchange.

Alveoli

Tiny air sacs in the lungs where gas exchange occurs, allowing oxygen to enter the blood and carbon dioxide to be expelled.

Alveolar Ducts

Narrow passageways in the lungs that lead from the bronchioles to the alveolar sacs, where gas exchange occurs.

Alveolus

A tiny air sac in the lungs where the exchange of oxygen and carbon dioxide occurs during the process of breathing.