A portfolio consists of the following securities. What is the portfolio weight of Stock A?
$$\begin{array} { c c c }
\text { Stock } & \text { \#Shares } & \text { PEg } \
\text { A } & 200 & \$ 48 \
\text { E } & 100 & \$ 33 \
\text { C } & 250 & \$ 21
\end{array}$$
A).336
B).389
C).445
D).451
E).529

Question

A portfolio consists of the following securities. What is the portfolio weight of Stock A?
$$\begin{array} { c c c } 
\text { Stock } & \text { \#Shares } & \text { PEg } \
\text { A } & 200 & \$ 48 \
\text { E } & 100 & \$ 33 \
\text { C } & 250 & \$ 21
\end{array}$$
A).336
B).389
C).445
D).451
E).529

Quizplus · Accepted Answer

To find the portfolio weight of Stock A, first calculate the total value of each stock in the portfolio, then divide the value of Stock A by the total portfolio value.Value of Stock A = 200 shares * $48 = $9600Value of Stock E = 100 shares * $33 = $3300Value of Stock C = 250 shares * $21 = $5250Total portfolio value = $9600 + $3300 + $5250 = $18150Portfolio weight of Stock A = $9600 / $18150 = 0.529 (or 52.9%)Therefore, the correct answer is E, which corresponds to a portfolio weight of 0.529 or 52.9%.

A Portfolio Consists of the Following Securities A)336 B)

A Portfolio Consists of the Following Securities A)336
B)