Clara's portfolio is worth $200,000, and her portfolio consists of common stocks worth $56,000. Therefore, equity constitutes _____ of Clara's portfolio.

Question

Quizplus · Accepted Answer

Equity refers to the value of ownership in a company, which in this case would be the common stocks in Clara's portfolio. To calculate the percentage of equity in Clara's portfolio: 
$56,000 (value of common stocks) / $200,000 (total portfolio value) x 100 = 28%. Therefore, the correct answer is choice C, 28%.

Clara's Portfolio Is Worth $200,000, and Her Portfolio Consists of Common