A stock market comprises 1,500 shares of stock A and 2,900 shares of stock B. The share prices...
Question:
A stock market comprises 1,500 shares of stock A and 2,900 shares of stock B. The share prices for stocks A and B are $22 and $32, respectively. What is the capitalization of the market portfolio?
A) $125,800
B) $100,640
C) $106,930
D) $138,380
Capitalization:
In finance, capitalization refers to the total amount that the capital structure of a company represents. The capitalization of a company can be computed using the number of shares of the company and the price of its shares.
Answer and Explanation: 1
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View this answerThe correct option is option A) $125,800.
Given information:
- Stock A's shares = 1,500
- Stock B's share = 2,900
- Stock A's price = $22
- Stock B's...
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Market Capitalization: Definition & Formula
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Chapter 6 / Lesson 30
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Read about market capitalization and how it reflects the value of a company's stock. Learn to calculate market cap using the market capitalization formula.
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