A Portfolio Has Three Stocks - 300 Shares of Yahoo

question 31

Multiple Choice

A portfolio has three stocks - 300 shares of Yahoo (YHOO) , 300Shares of General Motors (GM) , and 80 shares of Standard and Poor's Index Fund (SPY) . If the price of YHOO is $20, the price of GM is $30, and the price of SPY is $150, calculate the portfolio weight of YHOO and GM.

• A) 11.1%, 20.0%
• B) 16.7%, 28.3%
• C) 22.2%, 33.3%
• D) 22.2%, 43.3%

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Definitions:

Deductive Logic

A method of reasoning from one or more statements (premises) to reach a logically certain conclusion, based on the principle that if the premises are true, the conclusion must be true.

Formal Operational

This refers to the final stage in Piaget's theory of cognitive development, where individuals (typically adolescents and adults) gain the ability to think abstractly, logically, and systematically.

Hypothesis Testing

A statistical method that is used to determine whether there is enough evidence in a sample of data to infer that a certain condition is true for the entire population.

Equilibrium

is a state of balance or stability, achieved by equal action of opposing forces, often used in physical, chemical, and economic contexts.