You bought 200 shares of Microsoft at $50 per share. 100 shares of IBM for $100...

You bought 200 shares of Microsoft at $50 per share. 100 shares of IBM for $100 per share, and $300 shares of Amazon. com for $35 per share. what is the portfolio weight on the Amazon.com holding?

Expert Solution

Value of Microsoft = 200 shares * $50 = $10,000

Value of IBM = 100 shares * $100 = $10,000

Value of Amazon. com = 300 shares * $35 = $10,500

Total value of portfolio = $10,000 + $10,000 + $10,500 = $30,500

Portfolio weight on the Amazon.com = $10,500 / $30,500

Portfolio weight on the Amazon.com = 0.3443 or 34.43%

jeff jeffy answered 2 years ago

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