PSAT Math Multiple-Choice Practice Question 831

Question: 831

The tables below show an investor's percentage allocation in a portfolio. The first table shows the summary of investment types in the portfolio in the year 2000. The second table shows the summary of investment types in the portfolio in the year 2020.

A portfolio analyst wants to determine the relative impact on the performance of the stock portfolio of large-capitalization stocks, mid-capitalization stocks, and small-capitalization stocks. (Capitalization refers to the overall value of the company.) Based on the information given in the charts, how can you best characterize the impact of these different categories of stocks on the portfolio?

Correct Answer: D

Explanation:

(D) The tables give information only about the allocation of international and domestic stocks. They do not contain any information about the allocation of large-capitalization stocks, mid-capitalization stocks, and small-capitalization stocks. So not enough information is provided to reach a conclusion.

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