Question

A portfolio has three stocks — 110 shares of Yahoo​ (YHOO), 210 shares of General Motors​ (GM), and 100 shares of Standard and​ Poor's Index Fund​ (SPY). If the price of YHOO is​ $20, the price of GM is​ $20, and the price of SPY is​ $130, calculate the portfolio weight of YHOO and GM.

Answer 1

Answer:

11.34% and 21.65%

Explanation:

The computation of the portfolio weight of YHOO and GM is shown below:

               (a)               (b)                                    (a × b)

Shares      Price        Number of shares          Total value   Weight

YHOO       $20         110 shares                       $2,200          11.34%

GM            $20         210 shares                      $4,200            21.65%

SPY           $130        100 shares                     $13,000          67.01%

Total                                                                 $19,400