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ALOT OF POINTS MARKING PEOPLE AS BRAINLIST


You've been watching a stock that currently trades at $85 per share. You'd buy it if it were less expensive, say $75 per share. You think that by year-end, the stock will go to $130 and then level off or decline. You place a limit order to buy 100 shares at $ 75 and a limit order to sell at $130. It turns out that you were right about the direction of the price move and it goes straight to $140. What is your position?

Respuesta :

Parkerrrrr

Answer:

Stock portfolio is weighted in $ not shares.

weight = 100% * (position value) / (portfolio value)

Stock A

155 * $88 = $13,640

Stock B

130 * $98 = $12,740

if these are the only two positions in the portfolio then the total portfolio value is:

$13,640 + $12,740 = $26,380

weight A = 100% * $13,640 / $26,380

= 51.7%

then, since there's only two positions the weight of B is: 100% - 51.7% = 48.3%

Explanation:

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