If you own 400 shares of Xerox at $15.00,500 shares of Qwest at $10.00,and 350 shares of Liz Claiborne at $45.00,what are the portfolio weights of each stock?
A) Weight of Xerox: 22.43 percent; Weight of Qwest: 11.09 percent; Weight of Liz Claiborne: 58.88 percent
B) Weight of Xerox: 34.67 percent; Weight of Qwest: 16.69 percent; Weight of Liz Claiborne: 48.64 percent
C) Weight of Xerox: 22.43 percent; Weight of Qwest: 18.69 percent; Weight of Liz Claiborne: 58.88 percent
D) Weight of Xerox: 36.98 percent; Weight of Qwest: 61.07 percent; Weight of Liz Claiborne: 1.95 percent

Question

Quizplus · Accepted Answer

Total portfolio is 400 × $15.00 + 500 × $10.00 + 350 × $45.00 = $26,750.00
Xerox weight = 400 × $15 / $26,750 = 0.2243
Qwest weight = 500 × $10 / $26,750 = 0.1869
Liz Claiborne weight = 350 × $45 / $26,750 = 0.5888

If You Own 400 Shares of Xerox at $15