You buy 100 shares of Tidepool Co. for $40 each and 200 shares of Madf

QUESTION

You buy 100 shares of Tidepool Co. for $40 each and 200 shares of Madfish, Inc., for $15 each. What are the weights in your portfolio?
Calculation of portfolio weights Number of shares of Tidepool Co. = 100 Price of a share of Tidepool Co.= $40 Value of the shares in Tidepool Co.= $40*100 = $ 4000 Number of shares of Madfish,Inc. = 200 Price of a share of Madfish Inc = $15 Total value of the shares in Madfish Inc=$ 3000 Total Value of the portfolio= Value of shares in Tidepool Co. Value of shares in Madfish Inc =$4000 $3000 =$7000 Weight of the shares of Tidepool Co. in the portfolio= Total Value of¦

the shares in Tidepool Co. / Total value of the portfolio =$4000/$7000 =0.57 Weight of the shares of Madfish,Inc in the portfolio= Total Value of the shares in Madfish,Inc/ Total value of the portfolio =$3000/$7000 =0.43 Thus the weight of the shares of Tidepool Co. and Madfish , Inc are 0.57 and 0.43 respectively

ANSWER:

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