Question
Asked Feb 4, 2020
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A stock market comprises 4600 shares of stock A and 1600 shares of stock B. Assume the share prices for stocks A and B are $15 and $30, respectively. If you have $15,000 to invest and you want to hold the market portfolio, how much of your money will you invest in Stock A?

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Expert Answer

Step 1

The below table shows the calculation of stock weights:

Finance homework question answer, step 1, image 1

Step 2

The results are shown below:

Finance homework question answer, step 2, image 1

Step 3

Amount invest in stock A:

Finance homework question answer, step 3, image 1

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