A share market comprises 2000 shares of company A and 2000 shares of company B. The share prices for companies A and B are $20 and $10, respectively. What proportion of the market portfolio is comprised of each company?

Question

Quizplus · Accepted Answer

The market value of company A is 2000 shares * $20 = $40,000, and for company B is 2000 shares * $10 = $20,000. The total market value is $60,000. The proportion for company A is $40,000/$60,000 = 66.7%, and for company B is $20,000/$60,000 = 33.3%.

A Share Market Comprises 2000 Shares of Company a and 2000