1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Slav-nsk [51]
3 years ago
13

A portfolio has three stocks 110 shares of Yahoo (YHOO), 210 Shares of General Motors(GM), and 70 shares of Standard and Poorʹs

Index Fund (SPY). If the price of YHOO is $20, theprice of GM is $20, and the price of SPY is $130, calculate the portfolio weight of YHOO andGM.A) 10.6%, 13.5%B) 9.9%, 25.7%C) 13.5%, 24.4%D) 14.2%, 27.1%
Business
1 answer:
kobusy [5.1K]3 years ago
8 0

Answer:

Option (D) is correct.

Explanation:

Value of Yahoo:

= Shares × Price

= 110 shares × $20

= $2,200

Value of General Motors(GM):

= Shares × Price

= 210 shares × $20

= $4,200

Value of Standard and Poorʹs Index Fund (SPY):

= Shares × Price

= 70 shares × $130

= $9,100

Total value = Value of Yahoo + Value of GM + Value of SPY

                   = $2,200 + $4,200 + $9,100

                   = $15,500

Therefore,

Portfolio weight of YHOO:

= Value of YAHOO ÷ Total value

= $2,200 ÷  $15,500

= 0.1419 or 14.19%

Portfolio weight of GM:

= Value of GM ÷ Total value

= $4,200 ÷  $15,500

= 0.2709 or 27.09%

Therefore, the portfolio weight of YHOO and GM are 14.2% (approx) and 27.1% (approx), respectively.

You might be interested in
Shout Magazine focuses its marketing efforts on reaching teen-aged girls interested in fashion and celebrity culture. The firm b
Lelechka [254]

Considering the situation described above, Shout utilizes the strategy of <u>Concentrated Marketing.</u>

<u>Concentrated Marketing</u> is a type of Marketing strategy whereby firms or companies direct all endeavors and resources to develop and market a product for a particular target group segment.

Thus, when Shout Magazine focuses its marketing efforts on reaching teenaged girls interested in fashion and celebrity culture, this is a form of <u>Concentrated Marketing.</u>

Concentrated Marketing is often referred to as Niche Marketing, and it is considered more effective in small businesses.

Hence, in this case, it is concluded that the correct answer is "<u>Concentrated Marketing."</u>

Learn more here: brainly.com/question/15418516

4 0
3 years ago
When we read a visual text, we look for certain conventions to help us:
klemol [59]

Answer:

D is the answer

Explanation:

6 0
3 years ago
Bert's Car Sales is a new firm that is still in a period of rapid growth. The company plans on retaining all of its earnings for
DaniilM [7]

Answer:

The correct choice is C)

The most logical thing to do would be to calculate the value of the stock in 5 years time.

Explanation:

This speaks to ones understanding of dividend growth stock valuation models. These tools are used to establish a fair value for a stock by discounting the present value of its future dividends. A commonly used model is the constant growth dividend discount model.

The formula for the DDM, which assumes constant growth in dividends, is provided below.

P0 = D1/(r-g)

Where,

P0 = intrinsic value of stock

D1 = dividend payment one year from today

r = discount rate

g = growth rate

Identifying the correct answer entails establishing a timeline of the expected cash flows. We are given the following information:

t0 = $0

t1 = $0

t2 = $0

t3 = $0

t4 = $0

t5 = $0.20

t6 = $0.20 * 1.035

Given a rate of return, we could use the constant growth dividend discount model to establish the fair value of the firm at t5 (five years from today). Incidentally, to determine today's value, we'd discount it back another five years.

Based on the information above,  we are able to prove that the answer is '5'.

Cheers!

3 0
3 years ago
During the last decade, there was an increase in sales in cds, dvds, pen drives, and portable hard discs, as people sought to re
kipiarov [429]
During the last decade, there was an increase in sales in cds, dvds, pen drives, and portable hard discs, as people sought to replace their obsolete floppy discs. in terms of the technology cycle, this is an example of <span>DISCONTINUOUS CHANGE.</span>
4 0
3 years ago
What is one good way to find out how well prospects will do a job?
amid [387]

Answer:

do an interview

Explanation:

.........

7 0
3 years ago
Read 2 more answers
Other questions:
  • When a business message provides the rationale for a request before making the specific request, the message is said to be?
    7·1 answer
  • Countries A and B both produce bicycles. Country B has a comparative
    15·1 answer
  • Steve introduces in-house technical training programs for employees, as well as a provision to reimburse the tuition fees for em
    11·1 answer
  • Both normal and special cause variation add to project cost and need to be considered by project managers
    8·1 answer
  • On 3/15/20, Robertson Corp. bought land from Lear, Inc. for $248,000. Lear had carried the land on its books at $240,000. Robert
    7·1 answer
  • Centre College, a private liberal arts college in Central Kentucky, charged (billed) tuition and fees of $50,000 based on the re
    13·1 answer
  • Elm Company's accounting records reflect the following inventories: Dec. 31, 2020 Dec. 31, 2019 Raw materials inventory $420,000
    11·1 answer
  • Product differentiation that makes the product better for some consumers and worse for others is A) always welfare decreasing. B
    15·1 answer
  • Which of the following statements about economic policy are FALSE?
    13·1 answer
  • A utility-maximizing consumer buys so as to make ________ for all pairs of goods.
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!