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%

Question

Business

Lewis

24 February, 17:32

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%

+3

Answers (1)

Know the Answer?

London Carey · Answer 1

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%