Question

You own a portfolio which consists of $6,000 in stock a, $1,200 in stock b, $8,500 in stock c, and $2,800 in stock

d. what is the portfolio weight of stock c?

Answer 1

a+b+c+d=6000+1200+8500+2800=$18500

c=8500

$18500------------------------------100%

$8500--------------------------------X%

X=8500*100/18500

X=45.95%

the portfolio weight of stock c is 45.95%

Answer 2

The portfolio weight of stock C = (Stock Value of C/ Total portfolio value) x 100
Stock value = $8, 500. Total Portfolio value = $6, 000 + $1, 200 + $8, 500 + $2, 800 = $18, 500.
Hence Porfolio weight = (8, 500 / 18, 500) * 100 = 0.4594 * 100 = 45.94%