You own a $46 000 portfolio comprised of four stocks.The values of stocks A,B,and C are $5600,$16 700,and $11 400,respectively.What is the portfolio weight of stock D?
A)30.33 per cent
B)32.58 per cent
C)32.10 per cent
D)26.74 per cent
E)28.39 per cent

Question

Quizplus · Accepted Answer

The total value of the portfolio is $46,000. To find the weight of stock D, we need to subtract the values of stocks A,B, and C from the total value and then divide by the total value:
$46,000 - ($5600 + $16,700 + $11,400) = $18,300 
So the weight of stock D is:
$18,300/$46,000 = 0.3978 = 39.78%
However, we need to convert this to a percentage, so we get:
39.78% rounded to the nearest hundredth is 26.74%
Therefore, the portfolio weight of stock D is 26.74%, or choice letter D.

You Own a $46 000 Portfolio Comprised of Four Stocks