A portfolio holds shares in three companies. Given the information for each company in the table above, calculate the portfolio weighting for each company. Company Number of shares Current share price RIO 200 $126.70 BHP 450 $78.40 FMG 630 $23.05 RIO: 30%; BHP: 40%; FMG: 30% RIO: 15.6%; BHP: 35.2%; FMG: 49.2% RIO: 33.7%; BHP: 47.0%; FMG: 19.3% RIO: 47%; BHP: 33.7%; FMG: 19.3%

A portfolio holds shares in three companies. Given the information for each company in the table above, calculate the portfolio weighting for each company. Company Number of shares Current share price RIO 200 $126.70 BHP 450 $78.40 FMG 630 $23.05 RIO: 30%; BHP: 40%; FMG: 30% RIO: 15.6%; BHP: 35.2%; FMG: 49.2% RIO: 33.7%; BHP: 47.0%; FMG: 19.3% RIO: 47%; BHP: 33.7%; FMG: 19.3%

Personal Finance

13th Edition

ISBN:9781337669214

Author:GARMAN

Publisher:GARMAN

Chapter14: Investing In Stocks And Bonds

Section: Chapter Questions

Problem 1DTM

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Concept explainers

Stock Yields

The stock yield is otherwise known as the dividend yield. The dividend yield is an annual payment of the stock dividends to the holder of a firm’s stock. The dividend yield is a financial ratio to measure the value of dividend payout every year for the relative stock price. The yield of a stock is usually shown in a percentage that discloses the expected future earnings from stock depending on the current stock price in the future. Stock yield will change depending on the market fluctuations and in accordance with the market fluctuations, the dividends will be increased or decreased by the firm.

Question

A portfolio holds shares in three companies. Given the information for each company in the table above, calculate the portfolio weighting for each company.

Company	Number of shares	Current share price
RIO	200	$126.70
BHP	450	$78.40
FMG	630	$23.05

		RIO: 30%; BHP: 40%; FMG: 30%
		RIO: 15.6%; BHP: 35.2%; FMG: 49.2%
		RIO: 33.7%; BHP: 47.0%; FMG: 19.3%
		RIO: 47%; BHP: 33.7%; FMG: 19.3%

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