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Suppose you have $600 in your account. You bought 2 shares of Apple stock (AAPL) at...

Suppose you have $600 in your account. You bought 2 shares of Apple stock (AAPL) at $204/share and 1 share of Microsoft stock (MSFT) at $102/share. ___, the weight of MSFT is ____, and the weight of cash ____

The weight of AAPL in your portfolio is:

The weight of MSFT in your portfolio is:

The weight of Cash in your portfolio is:

Please give your answers as two decimals. For example "fifty percent" would be "0.50".

Solutions

Expert Solution

A B C D E F G H I
2
3 Total amount in account $ 600.00
4 Amount invested in apple stock (AAPL) $ 408.00 =2*204
5 Amount invested in 1 share of Microsoft (MSFT) $ 102.00 =1*102
6 Amount of cash in hand $    90.00 =D3-D4-D5
7
8 Weight of AAPL in the portfolio =Amount invested in AAPL portfolio/Total amount invested
9 =$408 / $600
10 0.68 =D4/D3
11
12 Weight of MSFT in the portfolio =Amount invested in MSFT portfolio/Total amount invested
13 =$102 / $600
14 0.17 =D5/D3
15
16 Weight of Cash in the portfolio =Amount invested in Cash portfolio/Total amount invested
17 =$90 / $600
18 0.15 =D6/D3
19
20 Hence,
21 Weight of AAPL in the portfolio 0.68
22 Weight of MSFT in the portfolio 0.17
23 Weight of Cash in the portfolio 0.15
24

jeff jeffy answered 3 months ago
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