Exhibit 1-8
USE THE FOLLOWING INFORMATION FOR THE NEXT PROBLEM(S)

Exhibit 1-8
USE THE FOLLOWING INFORMATION FOR THE NEXT PROBLEM(S)
Assume that you hold a two stock portfolio. You are provided with the following information on your holdings. $\begin{array}{|l|l|l|l|}\hline \text { Stock } & \text { Shares } & \text { Price }(t) & \text { Price }(t+1) \\\hline 1 & 15 & 10 & 12 \\\hline 2 & 25 & 15 & 16 \\\hline\end{array}$
-Refer to Exhibit 1-8. Calculate the market weights for Stocks 1 and 2 based on period t values

A) 39% for stock 1 and 61% for stock 2
B) 50% for stock 1 and 50% for stock 2
C) 71% for stock 1 and 29% for stock 2
D) 29% for stock 1 and 71% for stock 2
E) None of the above