Question

You own a portfolio that is invested as follows: $13,700 of Stock A, $4,800 of Stock B, $16,200 of Stock C, and $9,100 of Stock D. What is the portfolio weight of Stock B

Answer 1

The most basic way to determine the weight of an asset is to divide the  the dollar value of a security by the total dollar value of the portfolio. The Portfolio weight of stock B is 10.95%.

What is Portfolio weight?

Portfolio weight is a percentage of an investment portfolio that includes a specific holding or type of hold.

$\rm\ Portfolio \;Weight =\dfrac{Stock \;Value \; of \; B}{Total \;Portfolio \;Value} \times 100$

Stock value of C is $4,800

Total Portfolio Value is $43,800

$\rm\ Portfolio \;Weight =\dfrac{4,800}{43,800} \times 100\\\\\rm\ Portfolio \;Weight = 10.95\%$

Hence, the Portfolio weight of stock B is 10.95%.

Learn more about Portfolio Weight here:

https://brainly.com/question/25579610

#SPJ1