A portfolio consists of the following securities. What is the portfolio weight of Stock X?
$\begin{array}{ccc}
\text { Stock }&\text { Number of}&\text { Price per Share } \
&\text { Shares }\
\text {X }& 600 & \$ 17 \
\text {Y }& 900 & \$ 23 \
\text {Z} & 400& \$ 49
\end{array}$
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?
$\begin{array}{ccc}
\text { Stock }&\text { Number of}&\text {  Price per Share } \
&\text { Shares }\
\text {X }& 600 & \$ 17 \
\text {Y }& 900 & \$ 23 \
\text {Z} & 400& \$ 49
\end{array}$
A).183
B).202
C).219
D).246
E).285

Quizplus · Accepted Answer

The portfolio weight of Stock X is calculated by dividing the market value of Stock X by the market value of the entire portfolio. 
Market value of Stock X = 600 x $75 = $45,000 
Market value of entire portfolio = ($50 x 800) + ($75 x 600) + ($100 x 400) = $40,000 + $45,000 + $40,000 = $125,000 
Portfolio weight of Stock X = $45,000 / $125,000 = 0.36 or 36%. 
Therefore, the closest answer choice is B) 202, which represents a portfolio weight of 20.2%.

A Portfolio Consists of the Following Securities A)183 B)

A Portfolio Consists of the Following Securities A)183
B)