What are the portfolio weights for a portfolio that has 148 shares of Stock A that sell for $35 per share and 110 shares of Stock B that sell for $24 per share? (Do not round intermediate calculations and round your answers to 4 decimal places, e.g., .3216.)
What are the portfolio weights for a portfolio that has 148 shares of Stock A that sell for $35 per share and 110 shares of Stock B that sell for $24 per share? (Do not round intermediate calculations and round your answers to 4 decimal places, e.g., .3216.)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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![**Problem 11-1: Determining Portfolio Weights**
**Question:**
What are the portfolio weights for a portfolio that has 148 shares of Stock A that sell for $35 per share and 110 shares of Stock B that sell for $24 per share?
*(Do not round intermediate calculations and round your answers to 4 decimal places, e.g., 0.3216.)*
**Instructions:**
- Calculate the total value of Stock A and Stock B in the portfolio.
- Determine the weight of each stock in the portfolio by dividing the value of each stock by the total portfolio value.
- Round your final answers to four decimal places for accuracy.
**Layout:**
- **Stock A:** [Input Field]
- **Stock B:** [Input Field]
**Resources:**
- **eBook:** [Link to Resource]
- **Hint:** [Link to Hint]
- **References:** [Link to References]](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F81f3c13b-c916-4610-ab84-ceb3c5d340e8%2F068e9265-770f-4781-a023-2b2d20eb9877%2Ffreeniw_processed.jpeg&w=3840&q=75)
Transcribed Image Text:**Problem 11-1: Determining Portfolio Weights**
**Question:**
What are the portfolio weights for a portfolio that has 148 shares of Stock A that sell for $35 per share and 110 shares of Stock B that sell for $24 per share?
*(Do not round intermediate calculations and round your answers to 4 decimal places, e.g., 0.3216.)*
**Instructions:**
- Calculate the total value of Stock A and Stock B in the portfolio.
- Determine the weight of each stock in the portfolio by dividing the value of each stock by the total portfolio value.
- Round your final answers to four decimal places for accuracy.
**Layout:**
- **Stock A:** [Input Field]
- **Stock B:** [Input Field]
**Resources:**
- **eBook:** [Link to Resource]
- **Hint:** [Link to Hint]
- **References:** [Link to References]
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Step 1 Introduction
VIEWStep 2 Calculation Market capitalization of Stock A
VIEWStep 3 Calculation Market capitalization of Stock B
VIEWStep 4 Calculation Total value of the portfolio
VIEWStep 5 Calculation of weights of stock A in the portfolio
VIEWStep 6 Calculation of weights of stock A in the portfolio
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