Question

A portfolio has three stocks — 110 shares of Yahoo​ (YHOO), 210 shares of General Motors​ (GM), and 100 shares of Standard and​ Poor's Index Fund​ (SPY). If the price of YHOO is​ $20, the price of GM is​ $20, and the price of SPY is​ $130, calculate the portfolio weight of YHOO and GM.

Answer 1

11.34% and 21.65%

Step-by-step explanation:

The computation of the portfolio weight of YHOO and GM is shown below:

(a) (b) (a × b)

Shares Price Number of shares Total value Weight

YHOO $20 110 shares $2,200 11.34%

GM $20 210 shares $4,200 21.65%

SPY $130 100 shares $13,000 67.01%

Total $19,400