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.
