Answer and Explanation:
The computation of the weights of portfolio of each stock is shown below:
But before that first we have to determine the total portfolio i.e.
= 100 shares × $42.50 + 250 shares × $53.25 + 350 shares × $7.75
= $20,275
Now the weightage of each stock are as follows
For air line inc
= 100 shares × $42.50 ÷ $20,275
= 0.2096
For Buyrite
= 250 shares × $53.25 ÷ $20,275
= 0.6566
For Motor city
= 350 shares × $7.75 ÷ $20,275
= 0.1338
