A portfolio consists of the following securities. What is the portfolio weight of stock X?
A) .183
B) .202
C) .219
D) .246
E) .285

Question

A portfolio consists of the following securities. What is the portfolio weight of stock X? 
A) .183 
B) .202 
C) .219 
D) .246 
E) .285

Quizplus · Accepted Answer

Portfolio weight of stock X = (Value of stock X in the portfolio) / (Total value of the portfolio)
Total value of the portfolio = 1000 + 2000 + 1200 + 500 + 3000 = 7700
Value of stock X in the portfolio = 1200
Portfolio weight of stock X = 1200 / 7700 = 0.202 or 20.2%
Therefore, the best choice is B.

A Portfolio Consists of the Following Securities