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

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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

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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

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

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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) $185,000B) $157,250C) $175,750D) $203,500

Answer & Explanation Solved by verified expert

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Transcribed Image Text

Other questions asked by students

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