A portfolio contains 65 shares of Stock A selling for $32 per share and 175 shares of Stock B...

Question:

A portfolio contains 65 shares of Stock A selling for $32 per share and 175 shares of Stock B selling for $26 per share. Calculate the portfolio weight for each stock.

Portfolio:

In finance, a portfolio is a collection of individual assets. Constructing a well-diversified portfolio is key to reducing exposures to idiosyncratic risks for investors. The expected return on the portfolio is the market value weighted average of expected return on individual assets.

Answer and Explanation:

Become a Study.com member to unlock this answer!

View this answer

See full answer below.


Learn more about this topic:

Loading...
Portfolio Weight, Return & Variance: Definition & Examples

from

Chapter 12 / Lesson 1
34K

Learn about portfolio weight, variance, and return. Discover how to use the portfolio return, weight, and variance formulas, and identify uses of portfolios.


Related to this Question

Explore our homework questions and answers library