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Suppose you are holding a portfolio that consists of stocks A and B. Currently you have...

Suppose you are holding a portfolio that consists of stocks A and B. Currently you have invested $12.000 on A and $10.000 on B. What is the portfolio weight?

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Answer #2
a.
Weight of stock A           0.55
Working:
Weight of stock A = Investment in stock A/(Investment in stock A+Investment in Stock B)
= $ 12.000 / (12.000+10.000)
=           0.55
b.
Weight of stock B           0.45
Working:
Weight of stock B = Investment in stock B/(Investment in stock A+Investment in Stock B)
= $ 10.000 / (12.000+10.000)
=           0.45
answered by: anonymous
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