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
A company offered employees a defined-benefit retirement plan, in which retirees received benefits calculated on the basis of th
kozerog [31]

Answer: C. The employees will receive a share of profits as part of the company's ESOP.

Explanation:

The retirees can still get a portion of profits if they are part of an Employee Stock Ownership Plan.

ESOP is a pretty standard thing these days with companies where they reward their employees with shares in the company.

Seeing as the company is making too little to be able to keep paying Retirement benefits, the retirees being owners of Stock can still partake in the earnings that the company makes when they distribute dividends.

7 0
3 years ago
In addition to earning a bachelor's degree in education, what else do teacher candidates need to do in order to be eligible for
Contact [7]

Answer:

A. pass a series of state tests

Explanation:

After a student has graduated from college and they have their bachelor's degree, they need to then pass some state tests to show they know their subject area to get their teaching certificate. Hope this helps please give brainliest!

7 0
4 years ago
An internet company gives their old computer system to the computer science department at a local high school. How would GDP be
trapecia [35]
The Gdp would increase I believe
3 0
3 years ago
Page(s) 345-346 11.1. What is price discrimination? Order the following businesses based on the likelihood that the firm will be
MissTica

Answer: i just need points sorry

Explanation:

5 0
3 years ago
Hammer Time Company sells hammers that it purchases at a cost of $5. Hammer Time sells the hammers for $15. Last year, it sold 1
emmainna [20.7K]

Answer:

The sales revenue would be 170,000 if Hammer Time implements the decrease in selling price.

This would generate a decrease of $10,000 in the sales revenue

Explanation:

Understanding the way sales revenue is generated:

Units Sold * Unit Price = $Sales Revenue

If the selling price drops to $10

and units sold increase by 5,000

(12,000 + 5,000) * ( 15 - 5 ) = 17,000 * 10 = 170,000

Comparing with the previous year:

12,000 * 15 = 180,000

This policy decrease the sales revenue which makes the business less profitable.

8 0
3 years ago
Other questions:
  • Suppose touchtech, a hand-held computing firm, is selling bonds to raise money for a new lab—a practice known as finance. buying
    15·1 answer
  • True or false? fat loading in the days and weeks prior to an event is recommended as a method of enhancing athletic performance.
    12·1 answer
  • A decrease in the unemployment rate may be represented as a movement from a point on the production possibilities frontier to a
    7·1 answer
  • The primary difference between variable costing and absorption costing is
    10·1 answer
  • The glo-brite company is considering development of a new children's toothpaste in fun-shaped dispensers. before performing any
    15·2 answers
  • A stock is expected to pay a dividend of $0.75 at the end of the year. The required rate of return is rs = 10.5%, and the expect
    8·1 answer
  • When Toyota produces cars in the United States this does count in GDP even though Toyota is not an American company.
    7·1 answer
  • Which of the following statements is​ FALSE?
    6·1 answer
  • Suppose that a company's equity is currently selling for $28.25 per share and that there are 4.7 million shares outstanding and
    6·1 answer
  • The United States may have a tariff on cotton products from China in order to(A) prevent Chinese manufacturers from losing profi
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!