Question at position 9 What is the weight on Alphabet for a portfolio that is long $7M Tesla stock, long $3M Amazon, and short $5M Alphabet? Express your answer as a decimal (NOT percent).AnswerWhat is the weight on Alphabet for a portfolio that is long $7M Tesla stock, long $3M Amazon, and short $5M Alphabet? Express your answer as a decimal (NOT percent).[input]简答题
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Question at position 9 What is the weight on Alphabet for a portfolio that is long $7M Tesla stock, long $3M Amazon, and short $5M Alphabet? Express your answer as a decimal (NOT percent).AnswerWhat is the weight on Alphabet for a portfolio that is long $7M Tesla stock, long $3M Amazon, and short $5M Alphabet? Express your answer as a decimal (NOT percent).[input]简答题

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BlackTom AI · Accepted Answer

First, identify the positions and their monetary values: long 7M in Tesla, long 3M in Amazon, and short 5M in Alphabet. Next, compute the total portfolio value by summing the signed positions: 7M + 3M + (-5M) = 5M. The weight of Alphabet is its position value divided by the total portfolio value: (-5M) / (5M) = -1.0. This result indicates Alphabet makes up a negative one unit of the total portfolio value, reflecting that it is a short position and equal in magnitude to the entire long exposure of the portfolio.

If the total value had been different, the weight would change accordingly, but with these numbers the math simplifies to -1.0. Note that because the denominator is the net market value of all positions, the weight can be negative when there is a net short exposure, as is the case here. Also, ensure you express the weight as a decimal rather than a percentage, which is why -1.0 is the correct format in this context.

类似问题

A stock has a beta of 1.56 and an expected return of 17.3 percent. A risk-free asset currently earns 5.1 percent. If a portfolio of the two assets has a beta of 1.06, what are the portfolio weights?

Part 2 of 4 The portfolio weights for each stock are: Stock A: [ Select ] -25% -50% 25% 100% 50% Stock W: [ Select ] -100% 100% -50% -25% 50% 25% Stock Z: [ Select ] -25% 50% 100% -50% -100% 25%

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Part 2 of 4: An investor allocates $20,000 into Stock A and shorts $10,000 of Stock B. What is the portfolio weight of Stock B? Round your answer to four decimals. DO NOT use percentage format. E.g. 10.51% should be entered as 0.1051

Part 2 of 4 The portfolio weights for each stock are: Stock A: [ Select ] -25% -50% 100% 25% 50% Stock W: [ Select ] -25% -100% 25% -50% 100% 50% Stock Z: [ Select ] -25% -50% 100% 50% -100% 25%

Suppose you manage a small fund of $100 million fully invested in small stocks. Assume the riskfree rate is zero. Assume further that you find only 60 such stocks worthy of investing. If the second stock has a weight of w2 = −0.02, how much money will you put into it? (in millions)

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