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.
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.
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fromChapter 12 / Lesson 1
Learn about portfolio weight, variance, and return. Discover how to use the portfolio return, weight, and variance formulas, and identify uses of portfolios.