IIf an Investor Invests 50% in IBM Which Returned 20%;

question 17

Multiple Choice

IIf an investor invests 50% in IBM which returned 20%; 30% in Texaco which returned –10%; and 20% in Motorola which returned 5%, what is the portfolio rate of return?

• A) 14%
• B) 8%
• C) 8.45%
• D) 9.11%

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Definitions:

Positive Statement

An objective statement that can be tested, amended, or rejected by referring to the available evidence.

Insurance Benefits

Insurance benefits are payments made by an insurance company to the insured or a designated beneficiary under the terms of an insurance policy.

Ceteris Paribus Assumption

A Latin term meaning "all other things being equal," used in economics to isolate the effect of one variable on another by holding all other relevant factors constant.

Comparative Economics

Comparative economics studies and contrasts the differences, advantages, and disadvantages of various economic systems, such as capitalism and socialism.