What are the portfolio weights for a portfolio that has 158 shares of Stock A th

Question

What are the portfolio weights for a portfolio that has 158 shares of Stock A that sell for $35 per share and 135 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.)

What are the portfolio weights for a portfolio that has 158 shares of Stock A that sell for $35 per share and 135 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.)

Explanation / Answer

Find the values of each stock in portfolio and then find the total value of portfolio

Stock A value = 158 * 35 = $5530

Stock A value = 135 * 25 = $3375

Total value of portfolio = 5530 + 3375 = 8905

Stock A weight = 5530 / 8905 = 62.10%

Stock B weight = 3375 / 8905 = 37.90%

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