Dividends generally A) are paid as a fixed percentage of ...

[imowrer]

Dividends generally
 
  A) are paid as a fixed percentage of earnings.
  B) fluctuate more than earnings.
  C) are more stable than earnings.
  D) are guaranteed by the SEC.

Question 2

Consider a value-weighted market index that includes the following two companies. On Day 1 you form a portfolio to mimic the index. (In other words, to earn the same return as the index.)
 
  Company 1 Company 1 Company 2 Company 2
  Day Price  of Shares Price  of Shares
  1 6.62 200 10.00 750
  2 7.24 200 10.54 750
 
  What is the portfolio weight on Company 1, and what is the return on the portfolio from Day 1 to Day 2? (Weight , Return )
  A) 14, 5
  B) 14, 6
  C) 15, 6
  D) 15, 7
  E) 16, 5

[softEldritch]

Answer to Question 1

C

Answer to Question 2

C

[imowrer]

Gracias!

[olderstudent]

Thanks for the timely response, appreciate it