Final answer:
To calculate the portfolio weight on stock A, multiply the number of shares of stock A by the price per share to get the value of stock A. Then, calculate the total value of the portfolio by adding the values of all the stocks together.
Step-by-step explanation:
To calculate the portfolio weight on stock A, you need to determine the total value of your portfolio and the value of stock A in the portfolio. The portfolio weight of stock A is the value of stock A divided by the total value of the portfolio, multiplied by 100 to get a percentage.
First, calculate the value of stock A by multiplying the number of shares of stock A (1,000) by the price per share ($167). This gives you a value of $167,000 for stock A.
Next, calculate the total value of the portfolio by adding the values of all the stocks together. In this case, the total value is $167,000 (stock A) + $35,500 (stock B) + $27,200 (stock C) = $229,700.
Finally, calculate the portfolio weight on stock A by dividing the value of stock A by the total value of the portfolio and multiplying by 100.
Portfolio weight on stock A = ($167,000 / $229,700) * 100 = 72.66%.