A stock market comprises 4700 shares of stock A and 2300 shares of stock B. Assume the share prices for stocks A and B are $25 and $30, respectively. What proportion of the market portfolio is comprised of stock A?

Question

Quizplus · Accepted Answer

A) Multiply the number of shares of each stock by its price and add the values.
Thus, (4700 × $25) + (2300 × $30) = $186,500.
Stock A is worth 4700 × $25 = $117,500;
$117,500 / $186,500 = 63.0%

A Stock Market Comprises 4700 Shares of Stock a and 2300