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

Total portfolio is 300 × $15.88 + 250 × $151.00 + 1150 × $3.51 = $46550.50
Alaska Air weight = 300 × $15.88 / $46550.50 = 0.1023
Best Buy weight = 250 × $151.00 / $46550.50 = 0.8109
Ford Motor weight = 1,150 × 3.51 / $46550.50 = 0.0867

If You Own 300 Shares of Alaska Air at $15