What are the portfolio weights for a portfolio that has 156 shares of Stock A that sell for $45 per share and 130 shares of Stock B that sell for $30 per share

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What are the portfolio weights for a portfolio that has 156 shares of Stock A that sell for $45 per share and 130 shares of Stock B that sell for $30 per share

Darshita Changed status to publish July 26, 2020
0

Answer:
Total value
=( 156 x $45) + ( 130 x $30)
=$10,920
So total value = $10,92
Now find the portfolio weight for each stock
portfolio weight for each stock
WeightA
=( 156 x$45 )/$10,920
= .6429

WeightB
=( 130 x $30)/$10,920
= .3571
WeightA = .6429
WeightB = .3571

Darshita Changed status to publish July 26, 2020

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