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27 April, 14:57

A portfolio has three stocks long dash 210 shares of Yahoo (YHOO), 100 shares of General Motors (GM), and 30 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

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  1. 27 April, 15:07
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    47.72%; 22.72%

    Explanation:

    For Yahoo (YHOO),

    Worth of shares:

    = Price * Number of shares

    = $30 * 210

    = $6,300

    For General Motors (GM) ,

    Worth of shares:

    = Price * Number of shares

    = $30 * 100

    = $3,000

    For Standard and Poor's Index Fund (SPY) ,

    Worth of shares:

    = Price * Number of shares

    = $130 * 30

    = $3,900

    Total worth of shares:

    = YHOO + GM + SPY

    = $6,300 + $3,000 + $3,900

    = $13,200

    Portfolio weight of YHOO:

    = Worth of shares : Total worth of shares

    = $6,300 : $13,200

    = 0.4772 or 47.72%

    Portfolio weight of GM:

    = Worth of shares : Total worth of shares

    = $3,000 : $13,200

    = 0.2272 or 22.72%
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