What are the portfolio weights for a portfolio that has 124 shares of Stock A th

Question

What are the portfolio weights for a portfolio that has 124 shares of Stock A that sell for $34 per share and 104 shares of Stock B that sell for $24 per share? (Do not round intermediate calculations and round your answers to 4 decimal places, e.g., 32.1616.)

What are the portfolio weights for a portfolio that has 124 shares of Stock A that sell for $34 per share and 104 shares of Stock B that sell for $24 per share? (Do not round intermediate calculations and round your answers to 4 decimal places, e.g., 32.1616.)

Explanation / Answer

Stock A portfolio weight = no of shares * selling price= 124*34=4216

Stock B portfolio weight = no of shares *selling price =104*24=2496

A+B= 4216+2496=6712

so A weight = 4216/6712=.628

B weight = 2496/6712=.372

so the portfolio weights of A and B are 0.628 and .372

Related Questions

Navigate

• Browse (All)
• Browse W
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.