You own a portfolio that is invested as follows: $11,600 of stock A, $7,800 of stock B, $14,900 of stock C, and $3,200 of stock D. What is the portfolio weight of stock C?
A) 38.47 percent
B) 39.73 percent
C) 41.26 percent
D) 41.94 percent
E) 43.08 percent

Question

Quizplus · Accepted Answer

The portfolio weight of stock C is calculated by dividing the value of stock C by the total value of the portfolio. The total value of the portfolio is $11,600 + $7,800 + $14,900 + $3,200 = $37,500. The weight of stock C is $14,900 / $37,500 = 0.3973 or 39.73 percent.

You Own a Portfolio That Is Invested as Follows: $11,600