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?
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
The correct option is option A) $125,800.
- Stock A's shares = 1,500
- Stock B's share = 2,900
- Stock A's price = $22
- Stock B's...
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fromChapter 6 / Lesson 30
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.