A share market comprises 5000 shares of company A and 2000 shares of company B. Assume the share prices for companies A and B are $20 and $35, respectively. What proportion of the market portfolio is comprised of company A?

Question

Quizplus · Accepted Answer

The market value of company A's shares is $100,000 (5000 shares * $20), and the total market value is $170,000 ($100,000 + $70,000). The proportion of company A is $100,000 / $170,000 = 58.8%.

A Share Market Comprises 5000 Shares of Company a and 2000