Question

A portfolio has three stocks — 130 shares of Yahoo (YHOO), 240 shares of General Motors (GM), and 60 shares of Standard and P17.1%, 31.6% 12%, 30% 16.2%, 28.4% 12.8%, 15.8%

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Answer #1

Solution:-

Total Portfolio Value = Shares of Yhoo * Price + Shares of GM * Price + Shares of SPY * Price

Total Portfolio Value = 130 shares * 20 + 240 shares * 20 + 60 shares * 130

Total Portfolio Value = $2,600 + $4,800 + $7,800

Total Portfolio Value = $15,200

To Calculate Weight-

Weight of YHoo = MVO Hoo Total PortfolioValue

Weight of YHoo = 2, 600 15. 200

Weight of YHoo = 17.1%

Weight of GM = MV OfGM Total PortfolioValue

Weight of GM = 4. 800 15. 200

Weight of GM = 31.6%

The Correct Answer is Point A i.e. 17.1% , 31.6%

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