What are the portfolio weights for a portfolio that has 110 shares of Stock A that sell for $79 per share and 85 shares of Stock B that sell for $62 per share?

Finance Dec 19, 2020

Expert Solution

First, let's find the total capital.

Total Capital = Shares of Stock X times share price of Stock X summed across each stock in the portfolio:

Stock	Shares	Share Price	Capital	Weighting
A	110	$79	$8,690	$8,690 / $13,960 = 62.25%
B	85	$62	$5,270	$5,270 / $13,960 = 37.75%

Total Capital: $13,960

Archived Solution

Unlocked Solution

You have full access to this solution. To save a copy with all formatting and attachments, use the button below.

Already a member? Sign In

Important Note: This solution is from our archive and has been purchased by others. Submitting it as-is may trigger plagiarism detection. Use it for reference only.

For ready-to-submit work, please order a fresh solution below.

Or get 100% fresh solution

Get Custom Quote