Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. a stock market comprises 4600 shares of stock a an

A stock market comprises 4600 shares of stock A and 2000 shares of stock B. Assume...

Free

60.1K

Verified Solution

Question

Finance

A stock market comprises 4600 shares of stock A and 2000 sharesof stock B. Assume the share prices for stocks A and B are $25 and$35, respectively. What is the market capitalization of this marketportfolio?

A) $185,000

B) $157,250

C) $175,750

D) $203,500

Answer & Explanation Solved by verified expert
4.2 Ratings (809 Votes)

Market capitalization is computed using the below formula:

= Current price of share*Outstanding number of shares.

Market capitalization of stock A:

= $25*4,600 shares

= $115,000

Market capitalization of stock B:

=35*2,000 shares

= $70,000

Market capitalization of the market portfolio = Market capitalization of stock A + Market capitalization of stock B

                                                                      = $115,000 + $70,000

                                                                      = $185,000.

Hence, the answer is option a.

In case of any query, kindly comment on the solution
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Transcribed Image Text

A stock market comprises 4600 shares of stock A and 2000 sharesof stock B. Assume the share prices for stocks A and B are $25 and$35, respectively. What is the market capitalization of this marketportfolio?A) $185,000B) $157,250C) $175,750D) $203,500

Other questions asked by students

Q

ALLEN PLANETARY MOTION WEIGHTLESSNESS 55 Binding energy of moon and earth is GM M GM...

Physics
Q

A random sample of 854 births included 431 boys. Use a 0.05 significance level to test...

Statistics
Q

Briefly describe one way in which behavioral biology aids in the reintroduction of captive-bred animals to...

Biology
Q

onvert the decimal or whole number to a percent 1 153 8

Basic Math
Q

QUESTION 11 Riverboat Adventures pays $325,000 to buy out a competitor's...

Accounting
Q

question 1 : explain the following examples about anomalies: - friday effect - stocks are...

Accounting
Q

2. A computer was purchased for $3400...

Accounting
Q

Duffert Industries has total assets of $1,080,000 and total current liabilities (consisting only of accounts...

Accounting
Q

Consider a $100K, 10-year monthly mortgage with 6.5% interest. Calculate the realized annual rate of...

Accounting
Q

What is the key or pivotal role of auditing firms, such as KPMG?

Accounting
Q

Stan Mar, Inc. uses a flexible budget for manufacturing overhead based on ma Indirect labor...

Accounting
Q

Cheryl Dodds is an Engineer with the City of Regina. She earns a base bi-weekly...

Accounting