Answer :

Portfolio weights of shares are 55.8% and 44.2% respectively

There two methods to calculate portfolio weights of shares. One is by using values and other by using number of shares held/sold

Share 1

No. of shares (n1)= 135 shares

Value of shares (v1)= $84/ share

Market value= 135 shares × $84/share= $11340

Share 2

No. of shares (n2)= 110 shares

Value of shares (v2)= $82/share

Market value= 110 shares × $82/share= $9020

Total

Total Portfolio = value of share1 + value of share2

Total Portfolio= $11340+$9020 = $20360

Portfolio Weights = Value of Share/ Total Portfolio × 100

Share 1 = $11340/$20360 × 100 = 55.7%

Share 2 = $9020/$20360 ×100 = 44.3%

ALTERNATIVE

Number shares= 135 and 110

Total shares held = 245

Portfolio weights= Number of shares/ Total shares held × 100

S1= 135/245 × 100= 55%

S2 = 110/245 × 100 = 44%

The portion of a holding or class of holdings that constitutes a portfolio of investments is known as the Portfolio weight.

To know more about calculations of Portfolio Weights

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