A portfolio has 65 shares of Stock A that sell for $40 per share and 130...

A portfolio has 65 shares of Stock A that sell for $40 per share and 130 shares of Stock B that sell for $31 per share. What is the portfolio weight of Stock A? What is the portfolio weight of Stock B?

Expert Solution

Ans portfolio weight of Stock A = 39.22%

portfolio weight of Stock B = 60.78%


Stock	No of Shares (i)	Price per share (ii)	Total Investment (i)* (ii)	Weight
A	65.00	40.00	2,600.00	39.22%	(2600/6630*100)
B	130.00	31.00	4,030.00	60.78%	(4030/6630*100)
		Total	6,630.00	100.00%

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