You own a $58,600 portfolio comprised of four stocks.The values of Stocks A, B, and C are $11,200, $17,400, and $20,400, respectively.What is the portfolio weight of Stock D?
A)16.38 percent
B)15.39 percent
C)10.33 percent
D)12.10 percent
E)12.58 percent

Question

Quizplus · Accepted Answer

The portfolio weight of a stock is calculated by dividing the value of the stock by the total value of the portfolio. In this case, the total value of the portfolio is $58,600. The value of Stock D is $58,600 - $11,200 - $17,400 - $20,400 = $9,600. Therefore, the portfolio weight of Stock D is $9,600 / $58,600 = 16.38%.

You Own a $58,600 Portfolio Comprised of Four Stocks