What are the portfolio weights for a portfolio that has 185 shares of Stock A that sell for $64 per share and 115 shares of Stock B that sell for $49 per share

Respuesta :

The portfolio weights for a portfolio that has 185 shares of Stock A that sell for $64 per share is: 0.6775; 0.3325.

Portfolio weight for each stock

First step

Total value = 185($64) + 115($49)

Total value = $17,475

Second step

Portfolio weight for each stock is:

Portfolio weight A = 185($64)/$17,475

Portfolio weight A = .6775

Portfolio weight B = 115($49)/$17,475

Portfolio weight B = .3225

Therefore the portfolio weights for a portfolio that has 185 shares of Stock A that sell for $64 per share is: 0.6775; 0.3325.

The portfolio weights for a portfolio that has 185 shares of Stock A that sell for $64 per share is: 0.6775; 0.3325.

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