Go Global Investment Management has an asset allocation strategy of 60% U.S.investments and 40% global investments.Within the U.S.Go Global has allocated 70% of its portfolio to equities and 30% to bonds.Go Global now holds 3% of its U.S.equity portfolio in the stock of Wally World.Internationally,Go Global has allocated 55% to equities and 45% to bonds.About what percentage of Go Global's total portfolio is invested in Wally World?

Question

Quizplus · Accepted Answer

To calculate the percentage of Go Global's total portfolio invested in Wally World, we need to first find the total percentage of the portfolio allocated to U.S. equities, then multiply that by the percentage allocated to Wally World. 
Total percentage of portfolio allocated to U.S. equities = 60% * 70% = 42%
Percentage of U.S. equities allocated to Wally World = 3%
Therefore, the percentage of Go Global's total portfolio invested in Wally World = 42% * 3% = 1.26%.
So the answer is B.

Go Global Investment Management Has an Asset Allocation Strategy of 60