What are the portfolio weights for a portfolio that has 122 shares of Stock A th

Question

What are the portfolio weights for a portfolio that has 122 shares of Stock A that sell for $32 per share and 102 shares of Stock B that sell for $22 per share? (Do not round intermediate calculations and ROUND YOUR ANSWER TO 4 decimal places, e.g., 32.1616.)

What are the portfolio weights for a portfolio that has 122 shares of Stock A that sell for $32 per share and 102 shares of Stock B that sell for $22 per share? (Do not round intermediate calculations and ROUND YOUR ANSWER TO 4 decimal places, e.g., 32.1616.)

Explanation / Answer

value of stock A = 122 * 32 = 3904

value of stock B = 102 * 22 = 2244

total value = 3904 + 2244 = 6148

weight of stock A = value of stock A/total value

= 3904/6148

= 0.635

weight of stock B = 1 - weight of stock A

= 0.365

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