You bought 200 shares of Microsoft at $50 per share,100 shares of IBM for $100 a share and 300 shares of Amazon.com for $25 per share.What is the portfolio weight on the Amazon.com holding?
A) 0.25
B) 0.26
C) 0.27
D) 0.28
E) 0.29

Question

Quizplus · Accepted Answer

w_i = 11ea7fdb_fc13_740c_a768_47b464a816a6_TB2902_11 Amount invested in Amazon = 300 × $25 = $7,500 Amount invested in Microsoft = 200 × $50 = $10,000 Amount invested in IBM = 100 × $100 = $10,000 Total amount invested = $7,500 + $10,000 + $10,000 = $27,500 Weight of Amazon = 11ea7fdb_fc13_740d_a768_09f0732c72ed_TB2902_11 = 0.27

You Bought 200 Shares of Microsoft at $50 Per Share,100