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Estimate the weights (wi) for assets in the portfolio given the following information about the...

Question:

Estimate the weights (wi) for assets in the portfolio given the following information about the portfolio holdings:

PriceNumber of securitiesMarket valuePortfolio weightsPercentages to one decimal place
Stock A$251,000
Stock C$119500
Bond D$1,15020
Total Value

Portfolio weights:

Portfolio weights are given as the weight of an individual stock in a portfolio with respect to the total portfolio. It is the percentage of market value of the stock with respect to the market value of the total portfolio.

Answer and Explanation:

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The table goes as follows:

PriceNumber of securitiesMarket valuePortfolio weightsPercentages to one decimal place
Stock A$251,000$25,000 0.2326 ...

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Portfolio Weight, Return & Variance: Definition & Examples

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Chapter 12 / Lesson 1
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A portfolio can be designed in several different ways. It is important to understand the basics of a portfolio before building and managing one. In this lesson, we will go over the weight, return, and variance of a portfolio.


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