You own the following portfolio of stocks. What is the portfolio weight of stock C?
A) 2.6%
B) 3.2%
C) 5.6%
D) 6.0%
E) 7.8%

Question

You own the following portfolio of stocks. What is the portfolio weight of stock C? 
A) 2.6% 
B) 3.2% 
C) 5.6% 
D) 6.0% 
E) 7.8%

Quizplus · Accepted Answer

To find the portfolio weight of stock C, we need to divide the market value of stock C by the total market value of the portfolio. The market value of stock C is $80,000 ($40,000 x 2) and the total market value of the portfolio is $1,440,000 ($160,000 + $560,000 + $80,000 + $240,000 + $400,000). Therefore, the portfolio weight of stock C is ($80,000/$1,440,000) x 100 = 5.6%.

You Own the Following Portfolio of Stocks