Question
Asked Nov 24, 2019
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What are the portfolio weights for a portfolio that has 150 shares of Stock A that sell for $40 per share and 115 shares of Stock B that sell for $25 per share? (Do not round intermediate calculations and round your answers to 4 decimal places, e.g., 32.1616.)

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Expert Answer

Step 1

The amount invested in stock A is calculated below:

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Investment amount in stock A = Number of shares x Price per share 150x $40 = $6,000

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Step 2

The amount invested in stock B is calculated below:

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Investment amount in stock B Number of shares x Price per share =115x $25 = $2,875

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Step 3

Investment amount in stock A is $6,000 and investment amount in stock B is $2,875. Thus, the total amount ...

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Amount invested in stock A Weight for stock A = Total amount invested $6,000 $8,875 0.6761 or 67.6056%

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