A Portfolio Has Three Stocks - 240 Shares of Yahoo

question 41

Multiple Choice

A portfolio has three stocks - 240 shares of Yahoo (YHOO) , 150 Shares of General Motors (GM) , and 40 shares of Standard and Poor's Index Fund (SPY) . If the price of YHOO is $30, the price of GM is $30, and the price of SPY is $130, calculate the portfolio weight of YHOO and GM.

• A) 42.6%, 26.6%
• B) 23.4%, 49.3%
• C) 12.8%, 16.0%
• D) 40.5%, 28.0%

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Definitions:

Interest Rate

The Interest Rate is the percentage at which interest is paid by borrowers for the use of money they borrow from a lender, commonly expressed as an annual percentage.

Aristotle

An ancient Greek philosopher and polymath who made significant contributions to numerous fields of study, including metaphysics, ethics, politics, and natural science.

Usury

Charging an excessively high or illegal rate of interest on borrowed money.

Joseph Schumpeter

An economist and political scientist known for his theories on economic innovation and the concept of "creative destruction" in capitalism.