LO11. x LO1 2. Determining Portfolio Weights What are the portfolio weights for a portfolio that...

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LO11. x LO1 2. Determining Portfolio Weights What are the portfolio weights for a portfolio that has 185 shares of Stock A th

Answer 1

Answer #1

a.Total value of:

A=(185*64)=$11840

B=(115*49)=$5635

Total value=(11840+5635)=$17475

Hence weight of:

A=(11840/17475)=67.75%(Approx)

B=(5635/17475)=32.25%(Approx)

b.Total value=(3140+4300)=$7440

Portfolio return=Respective return*Respective weight

=(3140/7440*9)+(4300/7440*14)

=11.89%(Approx)

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Answer 2

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