What are the portfolio weights for a portfolio that has 145 shares of Stock A that sell for $45 per share and 110 shares of Stock B that sell for $27 per share

Respuesta :

Answer:

Portfolio weight A = 0.6872

Portfolio weight B = 0.3128

Explanation:

Calculation for What are the portfolio weights

First step is to calculate the Top Value

Top Value = 145(45) + 110(27)

Top Value = 9495

Calculation for Portfolio weight A

Portfolio weight A = 145(45)/9495

Portfolio weight A = 0.6872

Calculation for Portfolio weight B

Portfolio weight B = 110(27)/9495

Portfolio weight B = 0.3128

Therefore the portfolio weights are :

Portfolio weight A = 0.6872

Portfolio weight B = 0.3128