Net income divided by the book value of equity

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Reference no: EM131622702

1. Net income divided by the book value of equity is the:

- return on invested capital

- marginal cost of capital

- market-to-book ratio

- return on equity

2. Portfolio Weights An investor owns $29,000 of Adobe Systems stock, $32,000 of Dow Chemical, and $42,000 of Office Depot. What are the portfolio weights of each stock?

Adobe System = 0.27, Dow Chemical = 0.33, Office Depot = 0.40

Adobe System = 0.33, Dow Chemical = 0.33, Office Depot = 0.33

Adobe System = 0.31, Dow Chemical = 0.28, Office Depot = 0.41

Adobe System = 0.28, Dow Chemical = 0.31, Office Depot = 0.41

Reference no: EM131622702

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