What are the portfolio weights for a portfolio that has 140 shares of Stock A th

Question

What are the portfolio weights for a portfolio that has 140 shares of Stock A that sell for $50 per share and 120 shares of Stock B that sell for $40 per share? (Do not round intermediate calculations and round your answers to 4 decimal places, e.g., 32.1616.)

What are the portfolio weights for a portfolio that has 140 shares of Stock A that sell for $50 per share and 120 shares of Stock B that sell for $40 per share? (Do not round intermediate calculations and round your answers to 4 decimal places, e.g., 32.1616.)

Explanation / Answer

Investment in stock A= 140 *50 = 7000

Investment in stock B= 120 *40 = 4800

Total investment                            = 11800

weights:

Weight of A= 7000 /11800 = .5932

Weight of B = 4800/11800 = .4068

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