Answer:
Weight A= 0.6624
Weight B= 0.3376
Explanation:
From the question above,
Stock A has 148 shares at $35
Stock B has 110 shares at $24
The first step is to calculate the total amount of value
= 148($35)+110($24)
= $5,180+$2,640
= $7,820
Therefore the weight of each stock can be calculated as follows
Weight A= 148($35)/$7,820
= $5,180/$7,820
= 0.6624
Weight B= 110($24)/$7,820
= $2,640/$7,820
= 0.3376
Hence the portfolio weights are 0.6624 and 0.3376 respectively.
