You own a $25,000 portfolio consisting of two stocks, A and B. Stock A is valued...
You own a $25,000 portfolio consisting of two stocks, A and B. Stock A is valued at $10,000 and has an expected return of 10%. Stock B has an expected return of 5%. What are the weights of stock A and B in the portfolio?
Homework Answers
| Value of stock B = Total portfolio value - Value of stock A = 25000 - 10000 | 15000 |
| Weight of stock A = Value of stock A / Total portfolio value = 10000 / 25000 | 40% |
| Weight of stock B = Value of stock B / Total portfolio value = 15000 / 25000 | 60% |
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You own a $25,000 portfolio consisting of two stocks, A and B.
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