A portfolio has three stocks long dash 220 shares of Yahoo (YHOO), 110 shares of General Motors (GM), and 40 shares of Standard and Poor's Index Fund (SPY). If the price of YHOO is $30, the price of GM is $30, and the price of SPY is $130, calculate the portfolio weight of YHOO and GM.

0.4371 and 0.2185

Explanation:

For computing the portfolio weight, first we have to determine the total value which is shown below:

For Yahoo:

220 shares * $30 = $6,600

For General motors:

110 shares * $30 = $3,300

For Standard and Poor's Index Fund :

40 shares * $130 = $5,200

So, the total value would be

= $6,600 + $3,300 + $5,200

= $15,100

So, the portfolio weight of YHOO and GM would be

= $6,600 : $15,100 = 0.4371

And, for GM, it would be

= $3,300 : $15,100 = 0.2185