Question

Determining Portfolio Weights What are the portfolio weights for a portfolio that has 95 shares of...

Determining Portfolio Weights What are the portfolio weights for a portfolio that has 95 shares of stock A that sell for $53 per share and 120 shares of stock B that sell for $29 per share?

0 0
Add a comment Improve this question Transcribed image text
Answer #1

The given data is summarized as:

Stock A

Stock B

Number of shares

95

120

Selling Price per share

$53

$29

Calculation of Portfolio weights of Stock A and Stock B :

Formula for calculation of Portfolio weights is:

Step 1: Calculation of Total Portfolio Value:

Step 2: Calculation of Investment Value in Stock A and B:

Investment in Stock A = Number of shares of stock A Price of stock A

= 95 $53

= $5,035

Investment in Stock B = Number of shares of stock B Price of stock B

= 120 $29

= $3,480

Portfolio Weight for each stock is:

= 0.5913

= 0.4087

Add a comment
Know the answer?
Add Answer to:
Determining Portfolio Weights What are the portfolio weights for a portfolio that has 95 shares of...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT