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Problem 13-1 Determining Portfolio Weights (L01) What are the portfolio weights for a portfolio that has 135 shares of Stock

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Answer:

Value of Stock A = 135 shares* $48
Value of Stock A = $6,480

Value of Stock B = 165 shares * $29
Value of Stock B = $4,785

Total Value of Portfolio = Value of Stock A + Value of Stock B
Total Value of Portfolio = $6,480 + $4,785
Total Value of Portfolio = $11,265

Weight of Stock A = Value of Stock A / Total Value of Portfolio
Weight of Stock A = $6,480 / $11,265
Weight of Stock A = 0.5752

Weight of Stock B = Value of Stock B / Total Value of Portfolio
Weight of Stock B = $4,785 / $11,265
Weight of Stock B = 0.4248

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