A portfolio has three stocks 300 shares of Yahoo (YHOO), 300Shares of General Motors (GM),
and 80 shares of Standard and Poorʹs Index Fund (SPY). If the price of YHOO is $20, the price of
GM is $30, and the price of SPY is $150, calculate the portfolio weight of YHOO and GM.
A) 11.1%, 20.0%
B) 16.7%, 28.3%
C) 22.2%, 33.3%
D) 22.2%, 43.3%

Respuesta :

Answer:

c. 22.2%, 33.3%

Explanation:

Portfolio weight of each investment equals division of total value of each investment to total value of portfolio.

  • Portfolio weight of YHOO = (300×$20)/(300*$20 +300× $30 + 80×150)= 0.222= 22%
  • Portfolio weight of GM = (300×$30)/(300*$20 +300× $30 + 80×150)= 0.333= 33%