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What are the portfolio weights for a portfolio that has 145 shares of Stock A that sell for $45 per share and 110 shares of Stock B that sell for $27 per share
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21 votes
21 votes
What are the portfolio weights for a portfolio that has 145 shares of Stock A that sell for $45 per share and 110 shares of Stock B that sell for $27 per share

User Rocstar
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1 Answer

5 votes
5 votes

Answer:

Portfolio weight A = 0.6872

Portfolio weight B = 0.3128

Step-by-step explanation:

Calculation for What are the portfolio weights

First step is to calculate the Top Value

Top Value = 145(45) + 110(27)

Top Value = 9495

Calculation for Portfolio weight A

Portfolio weight A = 145(45)/9495

Portfolio weight A = 0.6872

Calculation for Portfolio weight B

Portfolio weight B = 110(27)/9495

Portfolio weight B = 0.3128

Therefore the portfolio weights are :

Portfolio weight A = 0.6872

Portfolio weight B = 0.3128

User Arefe
by
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