You own a portfolio which consists of 150 shares of stock A, 100 sharesof stock B and 300 shares of stock C.The market price of stock A is $34. The price of stock B is $18 and the priceof stock C is $

shares of stock C.The market price of stock A is $34. The price of stock B is $18 and the priceof stock C is $28. What is the portfolioweight of stock B？

A．11．8 percent

B．14．7 percent

C．18．2 percent

D．22．5 percent

shares of stock C.The market price of stock A is $34. The price of stock B is $18 and the priceof stock C is $28. What is the portfolioweight of stock B？

A．29 percent

B．34 percent

C．37 percent

D．41 percent

A.29 percent

B.34 percent

C.37 percent

D.41 percent

A.I and II only.

B.III and IV only.

C.I and III only.

D.II and IV only.

A.how to avoid inflation risks

B.what kinds of bonds to buy

C.how to get rich by investing in stock market

D.how to become richer by spreading the risk

Wal-Mart Waltons, Bill Gates. But today, everyone from the Philadelphia firefighter, his part-time receptionist wife and their three children, to the single Los Angeles lawyer starting out on his own needs a portfolio.

A portfolio is simply a collection of financial assets. It may include real estate, rare stamps and coins,, precious metals and even artworks. But those are for people with expertise. What most of us need to know about are stocks, bonds and cash (including such cash equivalents as money market funds). How do you decide what part of your portfolio should go to each of the big three？ Begin by understanding that stocks pay higher returns but are more risky; bonds and cash pay lower returns but are less risky.

Research by Ibbotson Associates, for example, shows that large company stocks, on average, have returned 11.2 percent annually since 1926. Over the same period, by comparison, bonds have returned an annual aver age of 5.3 percent and cash, 3.8 percent. But short term risk is another matter. In 1974, a one year $ I000 investment in the stock market would have declined to $ 735.

With bonds, there are two kinds of risk: that the borrower won't pay you back and that the money you '11 get won't be worth very much. The U.S. government stands behind treasury bonds, so the credit risk is almost nil. But the inflation risk remains. Say you buy a $1000 bond maturing in ten years, ff inflation averages about seven percent over that time, then the

$1000 you receive at maturity can only buy $ 500 worth of today's goods.

With cash, the inflation risk is lower, since over a long period you can keep rolling over your CDs every year (or more often). If inflation rises, interest rates rise to compensate.

As a result, the single most important rule in building a portfolio is this: If you don't need the money for a long time, then put it into stocks, If you need it soon, put it into bonds and cash.

This passage is intended to give advice on ______.

A．how to avoid inflation risks

B．what kinds of bonds to buy

C．how to get rich by investing in stock market

D．how to become richer by spreading the risk

Section B

Directions: There are 2 passages in this section. Each passage is followed by some questions or unfinished statements. For each of them there are four choices marked A, B, C and D. You should decide on the best choice.

The term investment portfolio conjures up visions of the truly rich the Rockefellers, the Wal-Mart Waltons, Bill Gates. But today, everyone—from the Philadelphia firefighter, his part-time receptionist wife and their three children, to the single Los Angeles lawyer starting out on his own needs a portfolio.

A portfolio is simply a collection of financial assets. It may include real estate, rare stamps and coins, precious metals and even artworks. But those are for people with expertise. What most of us need to know about are stocks, bonds and cash (including such cash equivalents as money-market funds).

How do you decide what part of your portfolio should go to each of the big three？ Begin by understanding that stocks pay higher returns but are more risky; bonds and cash pay lower returns but are less risky.

Research by Ibbotson Associates, for example, shows that large-company stocks, on average, have returned 11.2 percent annually since 1926. Over the same period, by comparison, bonds have returned an annual average of 5.3 percent and cash, 3.8 percent.

But short-term risk is another matter. In 1974, a one-year $1000 investment in the stock market would have declined to $ 735.

With bonds, there are two kinds of risk: that the borrower won't pay you back and that the money you'11 get won' t be worth very much. The U.S. government stands behind treasury bonds, so the credit risk is almost nil. But the inflation risk remains. Say you buy a $1000 bond maturing in ten years. If inflation averages about seven percent over that time, then the $1000 you receive at maturity can only buy $ 500 worth of today' s goods.

With cash, the inflation risk is lower, since over a long period you can keep rolling over your CDs every year (or more often), ff inflation rises, interest rates rise to compensate.

As a result, the single most important rule in building a portfolio is this: If you don' t need the money for a long time, then put it into stocks. If you need it soon, put it into bonds and cash.

This passage is intended to give advice on ______.

A．how to avoid inflation risks

B．what kinds of bonds to buy

C．how to get rich by investing in stock market

D．how to become richer by spreading the risk

ck" opportunities. But if you are a serious private investor, leave the Las Vegas mentality (19)________ those with money to fritter. The serious investor needs a "proper portfolio" -- a well -- planned selection of investments, (20)________ a definite structure and a clear aim. (21) exactly how does a newcomer to the stock market go about achieving that？ Well, if you go to five reputable stock brokers and ask them what you should (22)your money, youre likely to get five different answers even if you give all the relevant information about your age, family, finances and what you want from your investments. Moral？ There is no one right way to structure a portfolio. (23) ________ there are undoubtedly some wrong ways, and you can be sure that (24) of our five advisers would have suggested (25 )________all (or perhaps any) of your money into Periwigs. So what should you do？ Well assume that you have (26)________out the basics -- like mortgages, pensions, insurance and {27)________ to sufficient cash reserves. You should then establish your own individual aims. These are partly a matter of personal circumstances, partly a matter of psychology. For instance, if you are older you have less time to recover from any major losses, and you may well wish to (28) ________your pension income. So preserving your capital and generating extra income are your main 15 priorities. In this case, youd probably construct a portfolio with some shares (but not high risk ones), along with gifts, cash deposits, and perhaps convertibles (29) ________the income shares of split capital investment trusts. If you are younger, and in a solid financial position, you may decide to take an (30) ________ approach but only if youre blessed with a sanguine disposition and wont (31) sleepless nights over share prices. If you recognize yourself in this description, you might include a couple of heady growth stocks in your 20 portfolio, alongside your more pedestrian investments. Once you have decided (32) your investment aims, you can then decide (33) ________ to put your money. The golden role here is to spread your risk -- if you put all of your money into Periwigs International, youre setting yourself up as a hostage of fortune. "Periwigs" is the name of a fictitious company.

A.in

B.on

C.to

D.upon