A Stock Market Comprises 4600 Shares of Stock a and 2000

question 39

Multiple Choice

A stock market comprises 4600 shares of stock A and 2000 shares of stock B. Assume the share prices for stocks A and B are $25 and $35, respectively. What is the capitalization of the market portfolio?

• A) $185,000
• B) $157,250
• C) $175,750
• D) $203,500

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Definitions:

Least Squares Estimate

A statistical method used to minimize the sum of square differences between observed and estimated data points.

Dependent Variable

A variable in an experiment or model that is expected to change in response to changes in other variables.

Independent Variable

Factors in an experiment that are deliberately changed to test their impact on outcomes, observed through changes in the dependent variable.

Mean Square Error

A metric used to measure the average of the squares of the errors, indicating the discrepancy between estimated and actual values.