If you own 300 shares of Alaska Air at $15.88, 250 shares of Best Buy at $151.00, and 1,150 shares of Ford Motor at $3.51, what are the portfolio weights of each stock?
A) weight of Alaska Air: 10.23 percent, weight of Best Buy: 81.09 percent, weight of Ford Motor: 8.67 percent
B) weight of Alaska Air: 6.23 percent, weight of Best Buy: 71.09 percent, weight of Ford Motor: 22.67 percent
C) weight of Alaska Air: 15.23 percent, weight of Best Buy: 81.09 percent, weight of Ford Motor: 3.67 percent
D) weight of Alaska Air: 20.23 percent, weight of Best Buy: 76.09 percent, weight of Ford Motor: 3.67 percent

Question

Quizplus · Accepted Answer

To calculate the portfolio weights, first find the total value of each stock holding: Alaska Air = 300 * $15.88 = $4764, Best Buy = 250 * $151 = $37750, Ford Motor = 1150 * $3.51 = $4036.5. The total portfolio value = $4764 + $37750 + $4036.5 = $46550.5. Then, calculate each weight: Alaska Air weight = $4764 / $46550.5 ≈ 10.23%, Best Buy weight = $37750 / $46550.5 ≈ 81.09%, Ford Motor weight = $4036.5 / $46550.5 ≈ 8.67%.

If You Own 300 Shares of Alaska Air at $15