You Own a Portfolio of 5 Stocks and Have 3

Multiple Choice

You own a portfolio of 5 stocks and have 3 expected states of the economy. You have twice as much invested in Stock A as you do in Stock

A) The weights will be the probability of occurrence for each economic state.
B) Each stock will have a weight of 20 percent for a total of 100 percent.
C) The weights will decline steadily from Stock A to Stock E
D) The weights will be based on the amount invested in each stock as a percentage of the total amount invested.
E) The weights will be based on a combination of the dollar amounts invested as well as the economic probabilities.