Question

24. You own the following portfolio of stocks. What is the portfolio weight of Stock C?

Stock Number of Shares Price per Share

A 650 $15.82

B 320 $11.09

C 400 $ 39.80

D 100 $ 7.60

• 52.18 percent

• 53.86 percent

• 53.41 percent

• 51.09 percent

• 52.65 percent

Answer 1

To compute the portfolio weight of Stock C we need to use the formula = (Value of Stock C/ Value of Total Portfolio) x 100

Now let us compute the value of Total Portfolio

Stocks	No. of Shares (A)	Price Per Share (B) (Amt in $)	Value of each Share (C = AxB)
A	650	15.82	10,283.00
B	320	11.09	3,548.80
C	400	39.8	15,920.00
D	100	7.6	760.00
Total is The Value of Portfolio	30,511.80

Thereore Total of (C) Value of Each share would give us the value of total Portfolio = $ 30511.80

Now Value of Stock C as computed above (in bold) = $ 15920

Now Portfolio weight of Stcck C = ($15920 / $ 30511.80)*100

Portfolio weight of Stcck C = 52.18 %