After taking a reading-week trip to the Dominican Republic,you are now hooked on Cuban cigars.You decide to build a stock portfolio with two different cigar companies:
Altadis'Behike(Altadis)
Gurkha'sHis Majesty's Reserve (Gurkhas)
You purchase 1,000 Altadis' shares,each at a price of $45.You also purchase 1,200 Gurkha's shares,each at a price of $65.Calculate Altadis' portfolio weight.
A) 0.316
B) 0.366
C) 0.386
D) 0.416
E) 0.426

Question

Quizplus · Accepted Answer

w_i = 11ea7fdb_fc13_740e_a768_236a67920b39_TB2902_11 Amount invested in Altadis' Behike = 1,000 × $45 =$45,000 Amount invested in Gurkha's = 1,200 × $65 = $78,000 Total amount invested = $45,000 + $78,000 = $123,000 Weight of Altadis' = 11ea7fdb_fc13_740f_a768_fb7e7f24b56b_TB2902_11 = 0.366

After Taking a Reading-Week Trip to the Dominican Republic,you Are