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

Respuesta :

Answer:

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%