A Portfolio Had a Value of $50 Million at the Beginning

question 18

Multiple Choice

A portfolio had a value of $50 million at the beginning of a quarter and a value of $47 million half way through the quarter. At this point, there was a $4 million withdrawal, and the portfolio value at the end of the quarter was $41 million. The time-weighted return for the quarter was

• A) - 6.9%.
• B) -10.4%.
• C) - 7.1%.
• D) - 8.2%.

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Definitions:

Defense Mechanism

Psychological strategies used unconsciously to protect oneself from anxiety arising from unacceptable thoughts or feelings.

Repression

In psychoanalytic theory, the unconscious exclusion of painful impulses, desires, or fears from the conscious mind.

Defense Mechanism

psychological strategies brought into play by the unconscious mind to manipulate, deny, or distort reality in order to defend against feelings of anxiety and unacceptable impulses.

Repression

A defense mechanism where distressing thoughts and feelings are unconsciously blocked from conscious awareness.