Portfolio Weights An investor owns $10,000 of Adobe Systems stock,$15,000 of Dow Chemical,and $25,000 of Office Depot.What are the portfolio weights of each stock?
A)Adobe System = 0.3333, Dow Chemical = 0.3333, Office Depot = 0.3333
B)Adobe System = 0.2, Dow Chemical = 0.3, Office Depot = 0.5
C)Adobe System = 0.3, Dow Chemical = 0.2, Office Depot = 0.5
D)Adobe System = 0.2667, Dow Chemical = 0.3333, Office Depot = 0.4

Question

Quizplus · Accepted Answer

The total investment is $50,000. The weights are calculated as follows: Adobe Systems = $10,000/$50,000 = 0.2, Dow Chemical = $15,000/$50,000 = 0.3, Office Depot = $25,000/$50,000 = 0.5.

Portfolio Weights an Investor Owns $10,000 of Adobe Systems Stock,$15,000