A portfolio has 127 shares of Stock A that sell for $26.47 per share and 118...

A portfolio has 127 shares of Stock A that sell for $26.47 per share and 118 shares of Stock B that sell for $76.37 per share. What is the portfolio weight of Stock A? Enter the answer in 4 decimals (e.g. 0.3044).

Expert Solution

Weight of stock A = 127 * $26.47 = $3,361.69

Weight of stock B = 118 * $76.37 = $9,011.66

Total value = $3,361.69 + $9,011.66 = $12,373.35

Portfolio weight of Stock A = $3,361.69 / $12,373.35

Portfolio weight of Stock A = 0.2717

jeff jeffy answered 3 years ago

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