contestada

What are the portfolio weights for a portfolio that has 155 shares of stock a that sell for $88 per share and 130 shares of stock b that sell for $98 per share?

Respuesta :

All 155 Shares would be $13,640

All 130b Shares would be $12,740
Catya
Stock portfolio is weighted in $ not shares.

weight = 100% * (position value) / (portfolio value)

Stock A
155 * $88 = $13,640

Stock B
130 * $98 = $12,740

if these are the only two positions in the portfolio then the total portfolio value is:
$13,640 + $12,740 = $26,380

weight A = 100% * $13,640 / $26,380
= 51.7%

then, since there's only two positions the weight of B is: 100% - 51.7% = 48.3%